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According to the Growth Version of the Quantity Equation, If

Question 136

Multiple Choice

According to the growth version of the quantity equation, if the money supply increases by 10 percent while velocity stays constant and real GDP increased by 2 percent, then the price level:


A) increased by 12 percent.
B) increased by 8 percent.
C) decreased by 8 percent.
D) decreased by 12 percent.

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