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If Velocity Is Constant in the Long Run, Which of the Following

Question 25

Multiple Choice

If velocity is constant in the long run, which of the following results flow from the quantity theory of money?


A) A change in the money supply changes real GDP by an equal percentage.
B) A change in the money supply changes nominal GDP by an equal percentage.
C) A change in the money supply changes real interest rates by an equal percentage.
D) A change in the money supply changes consumer lending by an equal percentage.

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