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

question 190

Multiple Choice

According to the assumptions of the quantity theory of money,if the money supply decreases by 7 percent,then

• A)nominal and real GDP would fall by 7 percent.
• B)nominal GDP would fall by 7 percent;real GDP would be unchanged.
• C)nominal GDP would be unchanged;real GDP would fall by 7 percent.
• D)neither nominal GDP nor real GDP would change.