Multiple Choice
Holding the velocity of money constant,according to the equation of exchange,a 10 percent increase in the money supply could possibly cause which of the following?
A) A 5 percent increase in the quantity of output.
B) A 5 percent decrease in the price level.
C) A 10 percent decrease in the quantity of output.
D) A 10 percent increase in the price level.
Correct Answer:
Verified
Correct Answer:
Verified
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