Consider a situation where the central bank increases the money supply. All other things being equal, if nominal GDP increased by $800 billion during a time when velocity was 4, by how much did the central bank increase the money supply? $200 million $400 billion $400 million $200 billion

Consider a situation where the central bank increases the money supply. All other things being equal, if nominal GDP increased by $800 billion during a time when velocity was 4, by how much did the central bank increase the money supply? $200 million $400 billion $400 million $200 billion

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Money Growth And Inflation

Section: Chapter Questions

Problem 1PA

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Question

Consider a situation where the central bank increases the money supply. All other
things being equal, if nominal GDP increased by $800 billion during a time when
velocity was 4, by how much did the central bank increase the money supply?
O $200 million
$400 billion
$400 million
$200 billion

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