In an Economy in Which Velocity Is Constant and the Same

question 123

Multiple Choice

In an economy in which velocity is constant and the same level of real output is produced year after year,a slow increase in the money supply would result in a:

• A)constant price level.
• B)slowly increasing price level.
• C)rapidly increasing price level.
• D)slowly increasing real GDP.
• E)rapidly increasing real GDP.

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Definitions:

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