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

question 64

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

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