Economics 9708 · AS & A Level · Monetary policy

Monetary policy — practice question

If the money supply rises by 6 %, and money income rises by 10 %, what conclusion can be drawn from this?

  • AThere has been an increase in the level of output.
  • BThere has been an increase in interest rates.
  • CThere has been an increase in the velocity of circulation.
  • DThe price level has increased by 4 %.

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