If the velocity of circulation of money remains constant, real output rises by 4%, and the money supply expands by 3%, what is the approximate change in the price level?
- A–1 %
- B+1 %
- C+3 %
- D+7 %
Economics 9708 · AS & A Level · Oligopoly
Economics 9708 · AS & A Level · Oligopoly
If the velocity of circulation of money remains constant, real output rises by 4%, and the money supply expands by 3%, what is the approximate change in the price level?