If Initially the Money Supply Is $2 Trillion,velocity Is 5,the

question 75

Multiple Choice

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

• A)reduces real GDP to $2.5 trillion.
• B)causes velocity to rise to 10.
• C)decreases the price level to 1.
• D)decreases the price level to 1 and decreases velocity to 2.5.

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