If Velocity Were Constant,as Assumed by the Pre-Keynesian Version of the Quantity

question 147

Multiple Choice

If velocity were constant,as assumed by the pre-Keynesian version of the quantity theory,then a 10% change in the money supply would cause

• A)a proportionate change in prices.
• B)a proportionate change in output.
• C)the sum of proportionate change in P and Y equals 10%.
• D)the net difference of proportionate change in P and Y equals 10%.

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Definitions:

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Quick to make judgments or assessments, often without full information or in a critical manner.

Subjective

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