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Assume that the velocity of money has risen 2%. What would be the result of a 4% increase in money supply when real output rises
Assume that the velocity of money has risen 2%. What would be the result of a 4% increase in money supply when real output rises 2%?
1) Price level would rise by 8%
2) Unemployment would fall by 2%
3) Price level would rise by 4%
4) Unemployment would rise 4.5%
5) Cannot be determined with the available data.
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