Multiple Choice
Suppose the money supply increases by 10 percent but velocity is not constant. Given this information, it follows that:
A) nominal GDP will increase by 10 percent.
B) nominal GDP will increase by less than 10 percent.
C) nominal GDP will increase by more than 10 percent.
D) the change in nominal GDP cannot be determined.
Correct Answer:

Verified
Correct Answer:
Verified
Q76: It's difficult to measure asset inflation because
Q77: The quantity theory of money concludes that
Q78: Draw a short run and long-run Phillips
Q79: Inflation is undesirable because it:<br>A)always makes the
Q80: The short-run Phillips curve tells us, in
Q82: Unexpected inflation redistributes income from lenders to
Q83: One way to measure asset inflation is
Q84: If the economy is at Point A
Q85: A reason why the quantity theory of
Q86: If inflation was 3 percent last year