Which of the Following Is Not Implied by the Quantity

question 240

Multiple Choice

Which of the following is not implied by the quantity equation?

• A)If velocity is stable and money is neutral,an increase in the money supply creates a proportional increase in nominal output.
• B)If velocity is stable and money is neutral,an increase in the money supply creates a proportional increase in the price level.
• C)With constant money supply and output,an increase in velocity creates an increase in the price level.
• D)With constant money supply and velocity,an increase in output creates a proportional increase in the price level.

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