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According to the Quantity Equation, If Velocity Is Constant at 2.5

Question 71

Multiple Choice

According to the quantity equation, if velocity is constant at 2.5 and real GDP is constant at 8000, then, if the money supply is increased from 4800 to 5280, the price level:


A) increases to 1.1
B) increases to 1.5
C) increases to 1.65
D) is constant at 1.5

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