The table below shows data for Indonesia between 2005 and 2006. Assume the velocity of circulation did not change. According to the quantity theory of money, Indonesia's inflation rate
A) is higher in 2005 than in 2006.
B) was 17.5 percent in 2006.
C) is 27.1 percent in 2005.
D) will increase over the 12 months.

Question

The table below shows data for Indonesia between 2005 and 2006.  Assume the velocity of circulation did not change. According to the quantity theory of money, Indonesia's inflation rate
A) is higher in 2005 than in 2006. 
B) was 17.5 percent in 2006. 
C) is 27.1 percent in 2005. 
D) will increase over the 12 months.

Quizplus · Accepted Answer

The Answer of The table below shows data for Indonesia between 2005 and 2006.  Assume the velocity of circulation did not change. According to the quantity theory of money, Indonesia's inflation rate
A) is higher in 2005 than in 2006. 
B) was 17.5 percent in 2006. 
C) is 27.1 percent in 2005. 
D) will increase over the 12 months.

The Table Below Shows Data for Indonesia Between 2005 and 2006