Suppose over some period of time the money supply tripled, velocity fell by half, and real GDP doubled. According to the quantity equation the price level is now Select one: a.1.5 times its old value. b.6 times its old value. c.0.75 times its old value. d.3 times its old value.
Suppose over some period of time the money supply tripled, velocity fell by half, and real GDP doubled. According to the quantity equation the price level is now Select one: a.1.5 times its old value. b.6 times its old value. c.0.75 times its old value. d.3 times its old value.
Chapter1: Making Economics Decisions
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![Suppose over some period of time the money supply tripled, velocity fell by half, and real GDP doubled. According to the quantity
equation the price level is now
Select one:
a.1.5 times its old value.
b.6 times its old value.
c.0.75 times its old value.
d.3 times its old value.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F094417f3-df05-4742-9cce-815e609c7f38%2F9f52da13-064c-47be-97a2-fe907f71fbdd%2Fj9cxr5p_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose over some period of time the money supply tripled, velocity fell by half, and real GDP doubled. According to the quantity
equation the price level is now
Select one:
a.1.5 times its old value.
b.6 times its old value.
c.0.75 times its old value.
d.3 times its old value.
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