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My ourses Lommunity zzes Take Test: Quiz 10 Take Test: Quiz 10 Test Information

ID: 1103004 • Letter: M

Question

My ourses Lommunity zzes Take Test: Quiz 10 Take Test: Quiz 10 Test Information Description Respondus Instructions Timed Test This test has a time limit of 30 minutes.This test will save and submit automatically when the time expires. Warnings appear when half the time, 5 minutes, 1 minute, and 30 seconds remain. Multiple Attempts This test allows 3 attempts. This is attempt number . Force Completion Once started, this test must be completed in one sitting. Do not leave the test before clicking Save and Subm Remaining Time: 23 minutes, 56 seconds. Question Completion Status: Moving to another question will save this response. Question 3 10 po Suppose monetary neutrality holds and velocity is constant. A S percent increase in the money supply O increases the price level by more than 5 percent. O increases the price level by 5 percent. O increases the price level by 5 percent O does not change the price level. Moving to another question will save this response. «Ques an en FS F6 F7 F8 F9 FIO

Explanation / Answer

THe answer is B-) Increases the price level by 5 percent .

because, the value of money supply holds the positive relation with the price level. so if the money supply increases, the price level also increases.