Suppose That C = $700,I = $200,G = $200,NX =

Multiple Choice

Suppose that C = $700,I = $200,G = $200,NX = $100,and that the money supply is equal to $400.Based upon these assumptions,velocity is equal to ________________.If consumption and velocity both rise beyond their initial levels,then it follows that another component of spending ___________ necessarily fall.

A) 3;must
B) 3;does not
C) 4;must
D) 4;does not