According to the assumptions of the quantity theory of money, "if the money supply decreases by 7 percent, then"
a. nominal and real gdp would fall by 7 percent.
b. nominal gdp would fall by 7 percent; real gdp would be unchanged.
c. nominal gdp would be unchanged; real gdp would fall by 7 percent.
d. neither nominal gdp nor real gdp would change.
Answers: 3
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According to the assumptions of the quantity theory of money, "if the money supply decreases by 7 pe...
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