Suppose the economy's real output grows at an average rate of 3 percent per year.And suppose there is a 7 percent average rate of growth in the money supply, and velocity is constant.How would the inflation rate be affected?
A) The inflation rate would be -4 percent.
B) The inflation rate would be 4 percent.
C) The inflation rate would be 7 percent.
D) The inflation rate would be 10 percent.
Correct Answer:
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Q98: Exhibit 14-5 Q99: According to the equation of exchange, what Q100: Suppose nominal GDP is $2 trillion and Q101: Which of the following would most likely Q102: Suppose the economy's velocity is constant and Q104: Under which of the following circumstances will Q105: On which of the following does the Q106: Suppose real output and velocity are stable Q107: Which of the following would cause an Q108: Suppose the economy's velocity is constant and
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