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Macroeconomics

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Percent Changes with Quantity Theory of Money: Sticky Prices

MACRO-S1JIHF

Suppose that prices are perfectly sticky in the short run. If the money supply rises by $10\%$ and the velocity of money rises by $2\%$ by what percent will real output rise?

A

$2\%$

B

$8\%$

C

$10\%$

D

$12\%$

E

None of the above.