Assuming Velocity Is Constant, a 10 Percent Increase in the Quantity

question 106

True/False

Assuming velocity is constant, a 10 percent increase in the quantity of money leads to a 10 percent increase in nominal GDP in both the short run and the long run.

---

Definitions:

Parasympathetic Nervous

Part of the autonomic nervous system that restores the body to a state of calm and counterbalances the effects of the sympathetic nervous system.

Sympathetic Nervous

Part of the autonomic nervous system that prepares the body for action by triggering the fight-or-flight response.

Nervous System

An assembly of nerve cells and their fibrous connections that facilitate the transmission of nerve impulses among body regions, synchronizing bodily processes and perception.

Cerebral Cortex

The outer layer of the cerebrum in the brain, playing a key role in memory, attention, perception, cognition, awareness, thought, language, and consciousness.