If the velocity of circulation of money remains constant, and real output increases by 2% while the money supply grows by 5%, what is the approximate change in the price level?
- A−3%
- B+3%
- C+5%
- D+7%
Economics 9708 · AS & A Level · Oligopoly
Economics 9708 · AS & A Level · Oligopoly
If the velocity of circulation of money remains constant, and real output increases by 2% while the money supply grows by 5%, what is the approximate change in the price level?