According to the quantity theory of money, when velocity is constant, if output is higher._and for fixed M this meansP.Olower, lowerOlower, higherhigher, higherhigher; lowerreal balances are required,

The QTM is given by the equation When V remains unchanged, any change in M will have a direct…

According to the quantity theory of money, when velocity is constant, if output is higher real balances are required, and for fixed M this means P. Olower, lower Olower, higher O higher, higher higher, lower

According to the quantity theory of money, when velocity is constant, if output is higher real balances are required, and for fixed M this means P. Olower, lower Olower, higher O higher, higher higher, lower

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Influence Of Monetary And Fiscal Policy On Aggregate Demand

Section: Chapter Questions

Problem 5CQQ

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Question

According to the quantity theory of money, when velocity is constant, if output is higher._
and for fixed M this means
P.
Olower, lower
Olower, higher
higher, higher
higher; lower
real balances are required,

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