According to the Assumptions of the Quantity Theory of Money,if

Multiple Choice

According to the assumptions of the quantity theory of money,if the money supply decreases by 7 percent,then

A) nominal and real GDP would fall by 7 percent.
B) nominal GDP would fall by 7 percent;real GDP would be unchanged.
C) nominal GDP would be unchanged;real GDP would fall by 7 percent.
D) neither nominal GDP nor real GDP would change.