Which of the following is not implied by the quantity equation?
a. If velocity is stable and money is neutral, an increase in the money supply creates a proportional increase in nominal output.
b. If velocity is stable and money is neutral, an increase in the money supply creates a proportional increase in the price level.
c. With constant money supply and output, an increase in velocity creates an increase in the price level.
d. With constant money supply and velocity, an increase in output creates a proportional increase in the price level.
d
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Figure 4.5 illustrates a set of supply and demand curves for hamburgers. An increase in demand and an increase in quantity supplied are represented by a movement from
A) point b to point d. B) point d to point a. C) point c to point d. D) point b to point a.
Because the U.S. poverty line is an absolute measure rather than a relative one, the official U.S. poverty rate:
A. fell steadily when there was economic growth that raised the incomes of low-income families. B. fell steadily when there was economic growth that caused inequality to grow among the population. C. increased steadily when there was economic growth that raised the incomes of low-income families. D. increased steadily when there was economic growth that caused inequality to decline across the population.