If Initially the Money Supply Is $1 Trillion,velocity Is 5,the

question 39

Multiple Choice

If initially the money supply is $1 trillion,velocity is 5,the price level is 1,and real GDP is $5 trillion,an increase in the money supply to $2 trillion

• A)increases real GDP to $10 trillion.
• B)causes velocity to fall to 2.5.
• C)increases the price level to 2.
• D)increases the price level to 2 and velocity to 10.

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Definitions:

Negative Reinforcement

Strengthens a behavior by making the avoidance of an undesirable consequence contingent on its occurrence.

Avoidance

A defensive or protective strategy aimed at preventing, evading, or escaping a perceived threat or undesirable situation.

Reinforcement Strategies

Techniques used to encourage and strengthen the desired behavior through rewards or consequences.

External Control

The regulation or influence of an individual's behavior by forces outside themselves, such as societal norms or laws.