Multiple Choice
Suppose at present people hold a quantity of money equal to 80% of nominal GDP. What happens to velocity if people wish to increase their money holdings to 85% of nominal GDP?
A) Velocity can increase or decrease depending on people's tastes and preferences toward money.
B) Velocity is unaffected.
C) Velocity increases.
D) Velocity decreases.
Correct Answer:
Verified
Correct Answer:
Verified
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