If Money Is Neutral and Velocity Is Stable, an Increase

question 96

Multiple Choice

If money is neutral and velocity is stable, an increase in the money supply creates a proportional increase in which of the following?

• A)real output
• B)both real and nominal interest rate
• C)inflation rate
• D)the price level

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Definitions:

Retro-

A prefix meaning "backwards" or "behind," used in various contexts including medical terminology to denote location or time.

Backward

Denotes a movement or action directed towards the rear or in reverse.

Ante-

A prefix meaning before or preceding in time or order.

Before

Prior to a certain time or event.