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
Q14: The velocity of money equals:
A)Nominal GDP times
Q15: If money were valued in terms of
Q16: If we look at the value of
Q17: For many of the countries that made
Q17: Using the equation of exchange, if real
Q18: When the currency loses value, causing people
Q20: Inflation can be thought of as:
A)An increase
Q21: Key assumptions behind the quantity theory of
Q23: If the equation of exchange was expressed
Q24: If money growth and real output growth
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