If the Money Supply Increased by 4 Percent and Velocity

question 57

Multiple Choice

If the money supply increased by 4 percent and velocity increased by 4 percent:

• A)​nominal GDP would not change.
• B)​nominal GDP would increase by 1 percent.
• C)​nominal GDP would increase by 4 percent.
• D)​nominal GDP would increase by 8 percent.

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