According to the equation of exchange, if real output and the money supply stay the same and the price level increases:
A) the velocity of money has to increase.
B) the velocity of money has to decrease.
C) the real GDP had to rise.
D) nominal GDP remains constant.
Correct Answer:
Verified
Q5: If M2 is four times larger than
Q6: Which of the following statements is most
Q7: If M = the money supply; Y
Q8: If we look at the value of
Q9: Which of the following expresses the equation
Q11: Consider the following ratio: the average annual
Q12: The velocity of money equals:
A) nominal GDP
Q13: History shows that:
A) countries with low rates
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Q15: When the currency loses value, causing people
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