According to the equation of exchange, if velocity and real GDP do not change, a 3 percent increase in the quantity of money
A) raises the price level by 3 percent.
B) raises the price level by 3 ÷ (velocity).
C) raises the price level by less than 3 percent.
D) lowers the price level by 3 ÷ (real GDP).
E) lowers the price level by 3 percent.
A
Economics
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