If Y and M are constant and V doubles,the quantity equation implies that the price level
A)falls to half its original level.
B)doubles.
C)more than doubles.
D)does not change.

Question

Quizplus · Accepted Answer

According to the quantity equation, MV = PY. If Y and M are constant and V doubles, then PY must double as well. Since P represents the price level, it also doubles as a result. Therefore, option B is the correct choice.

If Y and M Are Constant and V Doubles,the Quantity