Answer to Question #67587 in Macroeconomics for Jon brakebush

Question #67587
Velocity is constant and nominal GDP increases by 5%, what is happening to the money supply?
1
Expert's answer
2017-04-21T12:41:05-0400
According to the quantity theory of Money, the 5% rise of Nominal GDP should lead to the 5% growth of Money Supply, if velocity is constant.

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