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.
Chapter25: Money, Banking, And The Federal Reserve System
Section: Chapter Questions
Problem 8P
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Question
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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