A certain percentage rise in the money supply will inevitably lead to a predictable effect on nominal GDP __________. (Select all that apply. Hint: There are two correct answers.) Select all that apply: if velocity is constant over time if velocity is changing but in a constant and predictable way if velocity changes unpredictably over time

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06-06-2022
Business

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A certain percentage rise in the money supply will inevitably lead to a predictable effect on nominal GDP __________. (Select all that apply. Hint: There are two correct answers.) Select all that apply: if velocity is constant over time if velocity is changing but in a constant and predictable way if velocity changes unpredictably over time

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chilljain33 chilljain33 · Answer 1 · 2022-06-15T06:17:46+02:00

A certain percentage rise in the money supply will inevitably lead to a predictable effect on nominal GDP if velocity is constant over the time.

What is money supply?

The control of the availability of money in an economy during a particular financial period, is known as the money supply of such economy. When the money supply increases, nominal GDP also increases over time.

Hence, option A holds true regarding the increasing money supply.

Learn more about money supply here:

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