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Which of the following is true? a) When people are willing to keep a lot of money relative to their incomes, money velocity is high
Which of the following is true?
a) When people are willing to keep a lot of money relative to their incomes, money velocity is high
b) All else equal, an increase in the money supply will decrease the price level in the long run
c) None of the other answers is correct
d) If money supply grows faster than real GDP and money velocity stays constant, then the price level will decrease
Choose a, b, c, or d
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