Suppose That M Increases by 5 Percent While the Velocity

question 44

Multiple Choice

Suppose that M increases by 5 percent while the velocity of money is constant. The quantity theory of money predicts that

• A) nominal GDP will rise by 5 percent.
• B) the price level will fall by 5 percent.
• C) the quantity of output will fall by 5 percent.
• D) nominal GDP will remain unchanged.
• E) nominal GDP will fall by 5 percent.

---

Definitions:

Broadcasting Mindset

An approach or mentality focused on distributing information widely across various media platforms to reach a large audience.

Publishing

The act of producing and distributing literature, music, or information—the activity of making content available to the public.

Super Bowl

An annual championship game of the National Football League (NFL), known for its significant cultural and advertising impact.

Ethical Information

Data or facts that are handled, shared, and used in ways that align with moral principles.