According to the quantity equation,the price level would change less than proportionately with a rise in the money supply if there were also
A)either a rise in output or a rise in the rate at which money changes hands.
B)either a rise in output or a fall in the rate at which money changes hands.
C)either a fall in output or a rise in the rate at which money changes hands.
D)either a fall in output or a fall in the rate at which money changes hands.

Question

Quizplus · Accepted Answer

If output rises or the velocity of money falls, the price level will increase less than proportionately to the increase in money supply, according to the quantity equation MV=PY.

According to the Quantity Equation,the Price Level Would Change Less