Using the equation of exchange, if real output increases by 5 percent per year and velocity is stable, in order to keep the price level stable
A. The interest rate must increase by 5 percent per year.
B. The money supply must increase by more than 5 percent per year because nominal output is greater than 5 percent.
C. The money supply must increase by 5 percent per year.
D. Velocity must increase by 5 percent per year.
Answer: C
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How much would be added to this year's GDP if you sold your four-year-old automobile for $4,000 and purchased a two-year-old model from an acquaintance for $10,000
a. nothing b. $6,000 c. $10,000 d. $14,000
When a person buys a bond of the XYZ Corporation, he or she can expect to
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