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.

---

Definitions:

Berries

Small, juicy fruits with a high vitamin content, often edible and ranging in flavor from sweet to tart, used in various culinary applications.

Utility Function

A mathematical representation that ranks preferences or satisfaction levels consumers derive from consuming goods and services.

Nuts

Edible seeds enclosed in a hard shell, often characterized by their high fat and protein content.

Berries

Small, pulpy, and often edible fruits, typically juicy, rounded, brightly colored, and seed-containing.