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According to the Quantity Equation,if Velocity Is Not Assumed to Be

Question 135

Multiple Choice

According to the quantity equation,if velocity is not assumed to be constant and the money supply is held constant,then an increase in the interest rate ______ velocity and ______ income.


A) increases; increases
B) increases; decreases
C) decreases; decreases
D) decreases; increases

Correct Answer:

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