According to the Assumptions of Quantity Theory,if the Money Supply

question 183

Multiple Choice

According to the assumptions of quantity theory,if the money supply increases 5% then

• A)nominal and real GDP would rise by 5%.
• B)nominal GDP would rise by 5%; real GDP would be unchanged.
• C)nominal GDP would be unchanged; real GDP would rise by 5%.
• D)neither nominal GDP nor real GDP would change.

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Definitions:

Monopoly

A market structure characterized by a single seller who has exclusive control over a product or service.

Antitrust Law

Legal regulations designed to promote fair competition for the benefit of consumers, by preventing monopolies, cartels, and other practices that restrain free trade.

Interstate Commerce

Trade, traffic, or transportation involving the movement of goods or people across state lines, regulated by federal law.

Professional Baseball

A sport involving organized teams and leagues, recognized at a professional level for its athletes who are paid to play.