Suppose Velocity Is Constant at 4,real Output Is 10,and the Price

question 42

Multiple Choice

Suppose velocity is constant at 4,real output is 10,and the price level is 2.From this initial situation,the government increases the nominal money supply to 6.If velocity and output remain unchanged,by how much will the price level increase?

• A)2)4%
• B)20%
• C)24%
• D)50%

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Definitions:

Projection

A defense mechanism in psychology where individuals attribute their own unacceptable thoughts, feelings, or motives to another person.

Attributions

Explanations or reasons individuals give for the behaviors or outcomes, whether attributing them to internal dispositions or external circumstances.

Behavior

The actions, conduct, or response of an individual or group towards stimuli or in various situations.

Worker Turnover

The rate at which workers exit an organization and are subsequently replaced by new employees.