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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Each firm in a monopolistically competitive market faces a perfectly inelastic demand curve for its product

a. True b. False Indicate whether the statement is true or false

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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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