If policies of the Bank of Canada cause the money supply to increase and velocity is held constant,what is the expected outcome?

Question

Quizplus · Accepted Answer

An increase in the money supply with constant velocity would lead to an increase in P×Q or nominal GDP, as there is more money in the economy chasing the same amount of goods and services. This would cause the general price level to increase if Q remained constant.

If Policies of the Bank of Canada Cause the Money