If the Velocity of Money Increases from 10 to 11

question 61

Multiple Choice

If the velocity of money increases from 10 to 11 and real GDP increases from $1 billion to $1.2,what will the Bank of Canada need to do keep prices the same?

• A)They would have to increase the money supply by 10 percent.
• B)They would have to decrease the money supply by 10 percent.
• C)They would have to increase the money supply by 20 percent.
• D)They would have to decrease the money supply by 20 percent.

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Definitions:

Role Stress

The stress experienced by an individual due to expectations and demands associated with their role in the workplace or society.

Commitment

The condition or characteristic of being fully committed to a cause, activity, or profession; complete and sincere dedication.

Motivational Trait

An inherent characteristic that drives an individual to act or behave in a way that leads to the achievement of personal goals.

Self-Esteem

An individual's sense of their own value and self-worth.