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:

Intellectual Capacity

The ability of an individual to think, reason, and understand, encompassing aspects like creativity, problem-solving, and memory.

Property Ownership

The legal right to possess, use, and control property, including land and personal assets, within the bounds of law.

Voting Exclusion

The practice of preventing certain groups or individuals from participating in the electoral process.

Government-Sponsored

Refers to initiatives, programs, or activities that are funded, initiated, or supported by a government body.