One way to measure asset inflation is to:
A)multiply the GDP deflator times nominal net worth; if it increases, there is asset inflation.
B)multiply the GDP deflator times real net worth; if it increases, there is asset inflation.
C)divide GDP by nominal net worth; if it increases, there is asset inflation.
D)divide nominal net worth by GDP; if it increases, there is asset inflation.

Question

Quizplus · Accepted Answer

Asset inflation refers to the increase in the prices of assets relative to goods and services. Dividing nominal net worth by GDP and observing an increase suggests that asset prices are rising faster than the general price level of goods and services, indicating asset inflation.

One Way to Measure Asset Inflation Is To