The Velocity of Money Is 20, Real GDP Is 100

question 151

Multiple Choice

The velocity of money is 20, real GDP is 100 and the money supply is 100. According to the quantity theory of money, a 10 percent increase in the money supply causes a

• A) 10 percent decrease in average prices.
• B) 10 percent increase in average prices.
• C) 5 percent decrease in real GDP.
• D) 20 percent decrease in velocity.
• E) 20 percent increase in average prices.

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A legal document filed with a government body to officially document the formation of a new corporation, limited liability company, or other legal entity.

Secretary of State

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