According to the Assumptions of the Quantity Theory of Money,if

question 159

Multiple Choice

According to the assumptions of the quantity theory of money,if the money supply increases 5 percent,then

• A)both the price level and real GDP would rise by 5 percent.
• B)the price level would rise by 5 percent and real GDP would be unchanged.
• C)the price level would be unchanged and real GDP would rise by 5 percent.
• D)both the price level and real GDP would be unchanged.

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Definitions:

Moderate Risk

A level of risk that is considered to be acceptable or manageable, often seen as a compromise between high risk and no risk.

Status Quo

The existing state of affairs, particularly in a societal, political, or organizational context.

Necessity and Reality

A conceptual framework that distinguishes between what is essential and fundamental (necessity) versus what actually exists or happens (reality).

High-risk Positions

Jobs or roles that entail significant potential hazards or dangers, either physically, financially, or legally, often requiring specialized skills or knowledge to mitigate risks.