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In the Short-Run Velocity Is Not Constant

Question 77

Multiple Choice

In the short-run velocity is not constant.Which of the following variables will be affected by a change in money supply?
I.real GDP
II.nominal GDP
III.the price level


A) III only
B) II and III
C) I, II, and III
D) If velocity is not constant, then none of the variables is affected.

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