If the money supply increased by 4 percent and velocity increased by 4 percent:
a. nominal GDP would not change
b. nominal GDP would increase by 1 percent.
c. nominal GDP would increase by 4 percent.
d. nominal GDP would increase by 8 percent.
d
Economics
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If an asset has a risk-return combination that is above the Security Market Line (SML), then arbitrage will make that asset's:
A. Beta increase B. Beta decrease C. Average expected return increase D. Average expected return decrease
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