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If the Money Supply Rises from $600 Billion to $800

Question 91

Multiple Choice

If the money supply rises from $600 billion to $800 billion and nominal GDP stays unchanged at $4,800 billion, then the income velocity of money:

A) Rises by 33 percent
B) Falls by 33 percent
C) Rises from 6 to 8
D) Falls from 8 to 6

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