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:

Optimal Level

The most favorable point, level, or condition for achieving a specific goal or maximizing a specific outcome under given constraints.

Marginal Benefit

The boost in satisfaction or utility experienced by a consumer when consuming an extra unit of a good or service.

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Legal statutes and regulations that govern who can enter a country, how long they can stay, and what activities they can undertake while they are there.

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The process of bringing family members together in a single country, often through immigration policies that favor keeping families intact.