Multiple Choice
If velocity is constant, which of the following results flow from the quantity equation?
A) Nominal GDP could change only if there were a change in the money supply.
B) In the short run, nominal GDP could change only if there were a change in the money supply and in the long run, nominal GDP could change only if there were a change in the money supply.
C) In the short run, nominal GDP could change only if there were a change in the money supply but in the long run, nominal GDP is affected by changes in any component of GDP.
D) In the short run, nominal GDP is affected by changes in any component of GDP but in the long run, nominal GDP could change only if there were a change in the money supply.
Correct Answer:

Verified
Correct Answer:
Verified
Q75: Use the following to answer questions .<br>Exhibit:
Q76: Use the following to answer questions .<br>Exhibit:
Q77: What are the three types of monetary
Q78: The delay between the time a policy
Q79: If the Fed sells government bonds, bank
Q81: The lag in realizing that a macroeconomic
Q82: If the economy experiences an inflationary gap,
Q83: Use the following to answer questions .<br>Exhibit:
Q84: Suppose the economy experiences a recessionary gap.
Q85: Let M = money supply; P =