If a country increases its money supply by 2%, and its nominal GDP increases by 3%, what can you say about what happened to the velocity of money in this country? Group of answer choices A) It decreased. B) None of the other options. C) It did not change. D) We cannot tell which way it changed. E) It increased.
If a country increases its money supply by 2%, and its nominal GDP increases by 3%, what can you say about what happened to the velocity of money in this country? Group of answer choices A) It decreased. B) None of the other options. C) It did not change. D) We cannot tell which way it changed. E) It increased.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter28: Monetary Policy And Bank Regulation
Section: Chapter Questions
Problem 40P: All other things being equal, by how much will nominal GDP expand if the central bank Increases the...
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If a country increases its money supply by 2%, and its nominal GDP increases by 3%, what can you say about what happened to the velocity of money in this country?
Group of answer choices
A) It decreased.
B) None of the other options.
C) It did not change.
D) We cannot tell which way it changed.
E) It increased.
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