Multiple Choice
Assume monetary equilibrium exists; that is, the desired and actual supply of money are equal. Also assume that nominal GDP equals $960 billion and the money supply is $160 billion. From a strict
Monetarist view, an increase in the money supply by $12 billion will increase nominal GDP by
A) $13 billion.
B) $24 billion.
C) $72 billion.
D) $80 billion.
Correct Answer:
Verified
Correct Answer:
Verified
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