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:

Preoperational

A stage in Jean Piaget's theory of cognitive development, occurring roughly between the ages of 2 and 7, characterized by symbolic thinking, egocentrism, and difficulty understanding abstract concepts.

Concrete Operational

A stage in Piaget's theory of cognitive development during which children gain the ability to think logically about concrete events.

Formal Operational

The final stage in Piaget's theory of cognitive development, beginning around age 11, where individuals gain the ability to think abstractly and logically about hypothetical situations.

Prefrontal Cortex

The front part of the frontal lobes of the brain, involved in complex behaviors such as planning, decision making, and moderating social behavior.