An increase in the money supply and a decrease in real GDP at the same time is consistent with the equation of exchange if:
A)velocity rises rapidly enough.
B)velocity falls rapidly enough.
C)the nominal GDP rises rapidly enough.
D)the price level falls rapidly enough.

Question

An increase in the money supply and a decrease in real GDP at the same time is consistent with the equation of exchange if:​
A)​velocity rises rapidly enough.
B)​velocity falls rapidly enough.
C)​the nominal GDP rises rapidly enough.
D)​the price level falls rapidly enough.

Quizplus · Accepted Answer

The Answer of An increase in the money supply and a decrease in real GDP at the same time is consistent with the equation of exchange if:​
A)​velocity rises rapidly enough.
B)​velocity falls rapidly enough.
C)​the nominal GDP rises rapidly enough.
D)​the price level falls rapidly enough.

An Increase in the Money Supply and a Decrease in Real