If the velocity of money is constant, then

A) a change in nominal GDP can be caused only by a change in the money supply.
B) a change in the money supply can be caused only by a change in the price level.
C) a change in the money supply is negatively related to a change in nominal GDP.
D) a change in the money supply would result in no change in nominal GDP.


Ans: A) a change in nominal GDP can be caused only by a change in the money supply.

Economics

You might also like to view...

What produced the European Payments Union?

(a) The Schumann Plan (b) The Monet Plan (c) The Spaak Plan (d) The Marshall Plan

Economics

The Social Security Act was passed during the administration of President ______________________.

Fill in the blank(s) with the appropriate word(s).

Economics

Table 14.3In Table 14.3, Market 3 would be in equilibrium if buyers believed lemons account for:

A. 45% of the market. B. 50% of the market. C. 55% of the market. D. 60% of the market.

Economics

Refer to the information provided in Figure 9.2 below to answer the question(s) that follow. Figure 9.2Refer to Figure 9.2. If demand for wheat is D2, then a profit-maximizing firm will produce ________ units and earn a profit of ________.

A. 13; $0 B. 15; $30 C. 13; $91 D. 7; $0

Economics