If the nominal money supply rises by 6 percent, the price level rises
If the nominal money supply rises by 6 percent, the price level rises by 4 percent, and output rises by 3 percent, then according to the quantity theory equation, income velocity must rise by:
a. 7 percent
b. 13 percent
c. 1 percent.
d. 3 percent.
ANSWER
B
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