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sattari [20]
2 years ago
8

According to the quantity equation, the price level would change less than proportionately with a rise in the money supply if th

ere were also either a a. rise in output or a rise in velocity. b. fall in output or a rise in velocity. c. rise in output or a fall in velocity. d. fall in output or a fall in velocity.
Business
1 answer:
Ira Lisetskai [31]2 years ago
8 0

Answer:

either a rise in output or a fall in velocity.

Explanation:

As per the quantity equation, if the level of the price would varies and less than the increase in the money supply so there should be either a rise in the output or the decline in the velocity

The quantity equation is

MV = PY

where

M denotes money supply

V denotes velocity

P denotes price level

Y denotes output

As the money supply would increase so it would be balance when there is a decline in a velocity or increase in output so that the price would remains the same

hence, the above represent the answer

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