-In the above figure, the economy initially is at point A and then increases in the quantity of money move the economy to point B the next year and C the year after. The economy has had a
A) positive and decreasing rate of inflation.
B) positive and constant rate of inflation.
C) one- time increase in the price level.
D) positive and increasing rate of inflation.

Question

-In the above figure, the economy initially is at point A and then increases in the quantity of money move the economy to point B the next year and C the year after. The economy has had a
A) positive and decreasing rate of inflation. 
B) positive and constant rate of inflation. 
C) one- time increase in the price level. 
D) positive and increasing rate of inflation.

Quizplus · Accepted Answer

The Answer of 
-In the above figure, the economy initially is at point A and then increases in the quantity of money move the economy to point B the next year and C the year after. The economy has had a
A) positive and decreasing rate of inflation. 
B) positive and constant rate of inflation. 
C) one- time increase in the price level. 
D) positive and increasing rate of inflation.

-In the Above Figure, the Economy Initially Is at Point