Figure 30-2.On the graph,MS represents the money supply and MD represents money demand.The usual quantities are measured along the axes.
-Refer to Figure 30-2.At the end of 2007 the relevant money-demand curve was the one labeled MD₂.At the end of 2008 the relevant money-demand curve was the one labeled MD₁.Assuming the economy is always in equilibrium,what was the economy's approximate inflation rate for 2008?

Question

Figure 30-2.On the graph,MS represents the money supply and MD represents money demand.The usual quantities are measured along the axes.

-Refer to Figure 30-2.At the end of 2007 the relevant money-demand curve was the one labeled MD₂.At the end of 2008 the relevant money-demand curve was the one labeled MD₁.Assuming the economy is always in equilibrium,what was the economy's approximate inflation rate for 2008?

Quizplus · Accepted Answer

The Answer of Figure 30-2.On the graph,MS represents the money supply and MD represents money demand.The usual quantities are measured along the axes. -Refer to Figure 30-2.At the end of 2007 the relevant money-demand curve was the one labeled MD₂.At the end of 2008 the relevant money-demand curve was the one labeled MD₁.Assuming the economy is always in equilibrium,what was the economy's approximate inflation rate for 2008?