If velocity is constant, which of the following results flow from the quantity equation?
A) Nominal GDP could change only if there were a change in the money supply.
B) In the short run, nominal GDP could change only if there were a change in the money supply and in the long run, nominal GDP could change only if there were a change in the money supply.
C) In the short run, nominal GDP could change only if there were a change in the money supply but
in the long run, nominal GDP is affected by changes in any component of GDP.
D) In the short run, nominal GDP is affected by changes in any component of GDP but in the long
run, nominal GDP could change only if there were a change in the money supply.
Ans: A) Nominal GDP could change only if there were a change in the money supply.
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