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Macroeconomics Study Set 12
Quiz 11: Money, Banks and the Reserve Bank of Australia
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Question 121
Essay
According to the 'quantity theory of money', if the money supply is growing at a rate of 5%, real GDP is growing at a rate of 2%, and velocity is constant, what will the inflation rate be? _____________________________________________________________________________________________ _____________________________________________________________________________________________
Question 122
Essay
What is 'hyperinflation' and what causes it? _____________________________________________________________________________________________ _____________________________________________________________________________________________