If the quantity theory of money is correct and other things remain the same, an increase in the quantity of money increases A. the price level and potential GDP B. nominal GDP and the velocity of circulation C. real GDP D. nominal GDP and the price level

If the quantity theory of money is correct and other things remain the same, an increase in the quantity of money increases A. the price level and potential GDP B. nominal GDP and the velocity of circulation C. real GDP D. nominal GDP and the price level

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: Money Growth And Intlation

Section: Chapter Questions

Problem 1QR

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Question

If the quantity theory of money is correct and other things remain the same, an increase in the quantity of money increases
A. the price level and potential GDP
B. nominal GDP and the velocity of circulation
C. real GDP
D. nominal GDP and the price level
Click to select your answer.
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