Multiple Choice
If the money supply increased by 4 percent and velocity increased by 4 percent:
A) nominal GDP would not change.
B) nominal GDP would increase by 1 percent.
C) nominal GDP would increase by 4 percent.
D) nominal GDP would increase by 8 percent.
E) nominal GDP would increase by 16 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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