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In the Equation of Exchange, an Increase in M of 8

Question 112

Multiple Choice

In the equation of exchange, an increase in M of 8 percent could be accompanied by changes in velocity, the price level and real GDP of:

A) -2%, 3%, 3%.
B) 4%, 0%, 4%.
C) 2%, 8%, 8%.
D) 8%, 8%, 4%.
E) 0%, 8%, 8%.

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