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.

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Definitions:

Principal

The amount of money initially invested or loaned, in contrast to interest or profit earned from the investment.

Authority

The authority or capability to issue commands, make choices, and ensure compliance.

Export Controls List

A regulatory document or framework that specifies goods, software, or technology that are restricted or controlled for export, to comply with national security and trade policies.

Export Broker

An individual or company that acts as an intermediary, helping businesses to sell and distribute products to foreign markets without having to deal with the complexities of export regulations directly.