According to the Assumptions of the Quantity Theory of Money,if

question 159

Multiple Choice

According to the assumptions of the quantity theory of money,if the money supply increases 5 percent,then

• A)both the price level and real GDP would rise by 5 percent.
• B)the price level would rise by 5 percent and real GDP would be unchanged.
• C)the price level would be unchanged and real GDP would rise by 5 percent.
• D)both the price level and real GDP would be unchanged.

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Definitions:

Bromine

A dark red, volatile element of the halogen group, used in a variety of compounds and applications, including flame retardants and photography.

Reactive Intermediate Species

Highly reactive molecules or ions formed transiently in the course of a chemical reaction, which go on to react further to form the final products.

Sp3 Hybridization

A form of orbital hybridization in which one s orbital and three p orbitals mix to form four equivalent sp3 hybrid orbitals, typically found in tetrahedral molecular geometries.

Monochlorinated Products

Chemical compounds obtained by adding a single chlorine atom to a molecule, often as intermediates in organic synthesis or in the production of insecticides and solvents.