The View That Velocity Is Constant in the Short Run

question 92

Multiple Choice

The view that velocity is constant in the short run transforms the equation of exchange into the quantity theory of money. According to the quantity theory of money,when the money supply doubles

• A)velocity falls by 50 percent.
• B)velocity doubles.
• C)nominal incomes falls by 50 percent.
• D)nominal income doubles.

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Individuals who display a natural curiosity and inclination towards research, exploration, and uncovering facts.

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The characteristic of being meticulously attentive to details, ensuring precision and accuracy in tasks or activities.

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