If the Income Velocity of Money Were V = 2

Multiple Choice

If the income velocity of money were V = 2, then

A) the demand for money would be two times the level of income
B) money demand for transactions would be 1/2 of the level of income
C) the increase in money supply would always be two times the increase in real GDP
D) a money supply of $6.3 trillion could support a nominal GDP of $12.6 trillion
E) a money supply of $1.2 trillion could support real a GDP of $9.6 trillion