If Money Is Neutral and Velocity Is Stable, What Does

question 173

Multiple Choice

If money is neutral and velocity is stable, what does an increase in the money supply create a proportional increase in?

• A) real output
• B) both real and nominal interest rate
• C) inflation rate
• D) the price level

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Definitions:

Marketing Concept

The idea that an organization should try to satisfy customers’ needs through coordinated activities that also allow it to achieve its own goals.

Durable Goods

Consumer products that have a long life span and are not consumed or worn out quickly.