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According to the Quantity Equation, If Velocity Is Constant at Two

Question 57

Multiple Choice

According to the quantity equation, if velocity is constant at two and real GDP is constant at 10 000, then, if the money supply is increased from 6250 to 6500, the price level:


A) increases to 1.25
B) increases to 1.3
C) increases to 1.5
D) is constant at 1.25

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