According to the Quantity Theory of Money, an Increase in the Money

question 99

Multiple Choice

According to the quantity theory of money, an increase in the money supply will cause:

• A) a proportional increase in the income velocity of money.
• B) a proportional decrease in the income velocity of money.
• C) a proportional increase in nominal GDP.
• D) a proportional decrease in nominal GDP.

---

Definitions:

Blood Pressure

The pressure of circulating blood against the walls of blood vessels, commonly measured in the arteries of the systemic circulatory system.

Hemoglobin

A protein in red blood cells responsible for carrying oxygen from the lungs to the body's tissues.

Iron

A mineral essential for various bodily functions, including hemoglobin formation in red blood cells and oxygen transport.

Plasma Coagulation

The process by which blood changes from a liquid to a gel, forming a blood clot, involving the conversion of plasma protein fibrinogen into fibrin.