If policies of the Fed cause the money supply to increase,and velocity is held constant,the expected outcome would be:
A) P ´ Q would increase, and the general price level would increase if Q remained constant.
B) P ´ Q would decrease, and the general price level would decrease if Q remained constant.
C) P ´ Q would decrease, and the general price level would increase if Q increased.
D) insufficient information is available to arrive at a conclusion.
Correct Answer:
Verified
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