Suppose that the velocity of circulation of money is, Ask an Expert

Economics

Suppose that the velocity of circulation of money is constant and equal to 5. If the Fed increases the supply of money by 5%, which of the following statements can we claim to be true with certainty?

A. P will increase by 5%, Y will remain the same.

B. Y will increase by 5%, P will remain the same.

C. The nominal GDP will increase by 5%.

D. None o the above.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M92195647

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