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It Is Generally Agreed That When the Rate of Monetary

Question 53

Multiple Choice

It is generally agreed that when the rate of monetary growth exceeds the rate of growth in real GDP in the long run


A) the inflation rate will increase every year by a constant rate.
B) real GDP will grow at a faster rate.
C) the average price level will tend to decrease over time.
D) the average price level will tend to increase over time.
E) the inflation rate will decrease every year until it ultimately equals zero.

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