In the Equation of Exchange, an Increase in M of 8

question 49

Multiple Choice

In the equation of exchange, an increase in M of 8 percent could be accompanied by changes in velocity, the price level and real GDP of:​

• A)​-2%, 3%, 3%.
• B)​4%, 0%, 4%.
• C)​2%, 8%, 8%.
• D)​8%, 8%, 4%.

---

Definitions:

Sales Opportunity

A potential revenue-generating event, or lead, that has been identified as having a significant probability of becoming an actual sale.

Recession

A significant decline in economic activity across the economy, lasting longer than a few months.

Automobile Industry

A sector of the economy focused on the manufacture, design, development, marketing, and selling of motor vehicles.

Medical Services Industry

The sector of the economy that provides healthcare services, including hospitals, clinics, and providers of health-related services.