Over a given period, the nominal value of national income increased by 4%. Over the same period the money supply declined by 2%. Which of the following is correct?
ANational income in real terms increased by approximately 2%
BNational income in real terms increased by approximately 6%
CThe general price level increased by approximately 2%
DThe income velocity of circulation increased by approximately 6%
Answer: D - The income velocity of circulation increased by approximately 6%
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