In an Economy, If the Velocity of Money Falls Faster

question 23

Multiple Choice

In an economy, if the velocity of money falls faster than the supply of money, _____.

• A)nominal GDP will increase
• B)nominal GDP will decrease
• C)nominal GDP will stay the same
• D)the price level will increase rapidly
• E)commercial banks will decrease the creation of money

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Definitions:

Reproduction

The process in biology where offspring are generated from their progenitors.

Generation

A group of individuals born and living around the same time, typically considered to be about 20–30 years.

Development

The process through which an organism grows or progresses, often involving physical, psychological, or social changes.

Multicellular Adult

An organism composed of multiple cells that has reached a mature or fully grown stage.