Assume that velocity and aggregate output are constant. If the money supply increases from $1.40 trillion to $1.44 trillion:OA. aggregate output will increase by 2.86%.OB. aggregate output will increase by 2.14%.OC. the price level will increase by 2.86%.OD. the price level will increase by 2.14%.

This can be defined as a concept that shows the total amount of commodities and services that are…

Assume that velocity and aggregate output are constant. If th OA. aggregate output will increase by 2.86%. OB. aggregate output will increase by 2.14%. OC. the price level will increase by 2.86%. OD. the price level will increase by 2.14%.

Assume that velocity and aggregate output are constant. If th OA. aggregate output will increase by 2.86%. OB. aggregate output will increase by 2.14%. OC. the price level will increase by 2.86%. OD. the price level will increase by 2.14%.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Assume that velocity and aggregate output are constant. If the money supply increases from $1.40 trillion to $1.44 trillion:
OA. aggregate output will increase by 2.86%.
OB. aggregate output will increase by 2.14%.
OC. the price level will increase by 2.86%.
OD. the price level will increase by 2.14%.

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