According to the assumptions of the quantity theory of money, if the money supply increases by 5 percent, then
a. nominal and real GDP would rise by 5 percent.
b. nominal GDP would rise by 5 percent; real GDP would be unchanged.
c. nominal GDP would be unchanged; real GDP would rise by 5 percent.
d. neither nominal GDP nor real GDP would change.
b
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If the price of Verizon cell phones falls, what will happen to the demand curve for Verizon sales people?
a. It will shift to the right. b. It will shift to the left. c. The direction of the shift is ambiguous. d. It will remain unchanged.
When the price level falls the quantity of
a. consumption goods demanded rises, while the quantity of net exports demanded falls. b. consumption goods demanded and the quantity of net exports demanded both rise. c. consumption goods demanded and the quantity of net exports demanded both fall. d. consumption goods demanded falls, while the quantity of net exports demand rises.