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"if nominal gdp rises, velocity always rises." is this statement true, false, or uncertain?
a. false. if the money supply increases by a greater amount than nominal gdp, velocity will decline.
b. true. if nominal gdp rises, the money supply decreases and hence velocity will always rise.
c. false. if nominal gdp rises, the money supply will rise proportionately and hence velocity will remain constant.
d. uncertain. it depends on whether nominal gdp increases because of an increase in p or an increase in y.
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"if nominal gdp rises, velocity always rises." is this statement true, false, or uncertain?
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