According to the quantity theory of prices and money

Reference no: EM13686004

According to the quantity theory of prices and money, a five percent change in the money supply, holding other variable constant, leads to

1. A 5% change in real GDP

2. A 5% change in the price level

3. A greater than 5%in real GDP

4. A 5% change in the interest rate

Reference no: EM13686004

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