Multiple Choice
According to both the equation of exchange and the quantity theory of money
A) an increase in the money supply will increase real Gross Domestic Product (GDP) .
B) an increase in the money supply will decrease real Gross Domestic Product (GDP) .
C) a decrease in the money supply will decrease the velocity of money.
D) a decrease in the money supply will decrease the price level.
Correct Answer:
Verified
Correct Answer:
Verified
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