Suppose the Money Supply Tripled,but at the Same Time Velocity

question 184

Multiple Choice

Suppose the money supply tripled,but at the same time velocity doubled and real GDP was unchanged.According to the quantity equation the price level

• A)is 1.5 times its old value.
• B)is 3 times its old value.
• C)is 6 times its old value.
• D)is the same as its old value.

---

Definitions:

Start-Up Cost

Expenses incurred before a business begins operating, including costs such as legal fees, marketing, equipment purchases, and rent.

Crossover Rate

The point at which two or more projects have the same net present value or rate of return, used in capital budgeting to compare projects.

Mutually Exclusive

Situations or events that cannot occur at the same time, often referring to investment choices or project decisions in finance.

Required Rate

The minimum return an investor expects to achieve by investing in a project, often used as a benchmark to assess its viability.