Multiple Choice
The output level of a country rises 5% and the money supply increases 8%. According to the equation of exchange, what can be expected in the long run in this country?
A) Output will fall by 3%.
B) Prices will rise by 3%.
C) Output will rise by 3%.
D) Prices will fall by 5%.
Correct Answer:
Verified
Correct Answer:
Verified
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