Question: 
In a closed economy, if the income velocity of circulation of money remains constant, in what will an increase in the money supply result?
a proportionate increase in the rate of growth of output
a proportionate increase in the level of money income
a proportionate increase in the level of output
a proportionate increase in the level of money income
a proportionate increase in the rate of growth of money income
Answer: 
a proportionate increase in the level of money income
Last Updated: 
08/11/2021 - 09:25