Suppose Velocity Is Constant at 4,real Output Is 10,and the Price

question 42

Multiple Choice

Suppose velocity is constant at 4,real output is 10,and the price level is 2.From this initial situation,the government increases the nominal money supply to 6.If velocity and output remain unchanged,by how much will the price level increase?

• A)2)4%
• B)20%
• C)24%
• D)50%

Understand the significance and application of the accounting equation.

Distinguish between the types of business activities: operating, investing, and financing.

Recognize how business transactions affect the accounting equation and financial statements.

Understand the principles underlying revenue recognition and measurement in accounting.