Question
Asked Apr 11, 2019
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If the price level doubled and someone wanted to maintain the same level of purchasing power, the nominal quantity of money demanded:

 

 

A)

must decrease.

 

B)

also must double.

 

C)

must increase by 50%.

 

D)

must stay the same.

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Expert Answer

Step 1

 

Nominal quantity of money demanded:

When the price level is doubled in the market, if someone wants to maintain the same lev...

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