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According to the Quantity Theory of Money, a Decision on the Part

Question 127

Multiple Choice

According to the quantity theory of money, a decision on the part of all business firms currently paying employees on a monthly basis to begin paying on a weekly basis would be expected to


A) increase velocity and increase nominal GDP.
B) increase velocity and decrease nominal GDP.
C) decrease velocity and increase nominal GDP.
D) decrease velocity and decrease nominal GDP.

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