Multiple Choice
Starting from long-run equilibrium, if the velocity of money increases (due to, for example, the invention of automatic teller machines) and no action is taken by the government:
A) prices will rise in both the short run and the long run.
B) output will rise in both the short run and the long run.
C) prices will rise in the short run and output will rise in the long run.
D) output will rise in the short run and prices will rise in the long run.
Correct Answer:
Verified
Correct Answer:
Verified
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