According to the basic quantity equation of money, if price and output fall while velocity increases, then:
A. the quantity of money will rise.
B. the quantity of money will fall.
C. the quantity of money will rise before it falls.
D. the quantity of money will rise slowly.
Answer:B
According to the basic quantity equation of money, if price and output fall while velocity increases, then:
A. the quantity of money will rise. B. the quantity of money will fall. C. the quantity of money will rise before it falls. D. the quantity of money will rise slowly.
Explanation: Type: Multiple Choice