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Given the Equation of Exchange, MV = PQ, If the Money

Question 52

Multiple Choice

Given the equation of exchange, MV = PQ, if the money supply is reduced when the economy is operating at full employment, the primary expected result will be:


A) a decrease in output (Q) .
B) an increase in velocity (V) .
C) a decrease in the price level (P) .
D) all of the above.

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