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Suppose Velocity Is Constant at 3,real Output Is 6000,and the Price

Question 65

Multiple Choice

Suppose velocity is constant at 3,real output is 6000,and the price level is 20.From this initial situation,the government increases the nominal money supply to $50,000.If velocity and output remain unchanged,by how much will the price level increase?


A) 10%
B) 20%
C) 25%
D) 50%

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