If the Velocity of Money Remains Unchanged and the Economy

question 61

Multiple Choice

If the velocity of money remains unchanged and the economy is at full employment, then the equation of exchange predicts that a rise in the money supply will:

• A) Increase prices
• B) Increase interest rates
• C) Increase real output
• D) Decrease nominal GDP

---

Definitions:

Digital Filing System

An electronic system for organizing, storing, and retrieving digital documents or files.

Documents

Written, printed, or electronic records that provide information or evidence of transactions, activities, or concepts.

Sustainable Business Practices

Practices adopted by companies aimed at creating positive impacts on the environment, society, and economy, ensuring long-term business success without harming ecological and socio-economic systems.

International Company

A business enterprise that operates in multiple countries beyond its original or home country.