The income velocity of circulation stands at 2.0. If the money supply grows by 8% and the average price level rises by 4%, what change will there be in real output (transactions)?
- A+4%
- B+8%
- C+12%
- D+16%
Economics 9708 · AS & A Level · Oligopoly
Economics 9708 · AS & A Level · Oligopoly
The income velocity of circulation stands at 2.0. If the money supply grows by 8% and the average price level rises by 4%, what change will there be in real output (transactions)?