According to the equation of exchange, if the money supply rises by 10% and the velocity of circulation and price level are constant, then real national income will rise by

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The equation of exchange is MV = PY, where M is the money supply, V is the velocity of circulation, P is the price level, and Y is the real national income. If M increases by 10% and V and P remain constant, then Y must also increase by 10% to maintain the equality.

According to the Equation of Exchange, If the Money Supply