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Suppose the Economy's Velocity Is Constant and the Same Level

Question 73

Multiple Choice

Suppose the economy's velocity is constant and the same level of real output is produced year after year.What would be the result of a slow increase in the money supply?  


A)  a slowly increasing price level 
B)  a rapidly increasing price level 
C)  a slowly increasing real GDP 
D)  a rapidly increasing real GDP

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