Assume that the demand for money equals the supply of money of $80 billion and that the nominal GDP is $400 billion.According to the monetarist view,by how much will an increase in the money supply of $5 billion increase the nominal GDP?
A) By $30 billion.
B) By $25 billion.
C) By $20 billion.
D) By $10 billion.
E) By zero.
Correct Answer:
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