An Increase in M or an Increase in V, Other

question 74

Multiple Choice

An increase in M or an increase in V, other things equal, would definitely increase:​

• A)​the price level.
• B)​real GDP.
• C)​nominal GDP.
• D)​unemployment.

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Definitions:

Necessity

An indispensable requirement or need for something; often something that is essential for survival or to carry out a specific task.

Luxury Good

A product or service that is considered to be of high quality and high price, often seen as a status symbol.

Monetary Cost

The amount of money required to purchase goods or services, or the financial expenditure associated with an action or decision.

Benefits Received

A principle in public finance that taxes should be levied according to the benefits received by the taxpayer from government services.