If the inflation rate increases,
A) the velocity of circulation increases.
B) potential GDP increases.
C) real GDP growth increases.
D) the nominal interest rate falls.
E) the real interest rate rises.
Correct Answer:
Verified
Q165: Hyperinflation is
A) inflation caused by negative growth
Q166: In the long run, the price level
Q167: In the long run, an increase in
Q168: Suppose that P × Y is $5,000
Q169: Suppose that real GDP grows by 3
Q171: Inflation at a rate that exceeds 50
Q172: If the quantity of money starts to
Q173: Other things remaining the same, if the
Q174: Hyperinflation
A) occurs in the United States during
Q175: If the quantity of money grows at
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents