The velocity of circulation grows at 1 percent and real GDP grows at 3 percent. If the quantity of money grows at 4 percent, the inflation rate is
A) 8 percent. B) 4 percent. C) zero. D) 2 percent. E) 10 percent.
D
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The demand for the services of labor ________ a derived demand and the demand for the services of land ________ a derived demand
A) is; is B) is; is not C) is not; is D) is not; is not
A fixed exchange rate policy:
A. imports monetary policy. B. strengthens domestic interest rate policy. C. will likely make domestic inflation more volatile. D. decreases central bank policy accountability and transparency.
In general, with a monopolist's outcome, total surplus is:
A. the same as that of a competitive market. B. higher than that of a competitive market. C. lower than that of a competitive market. D. Any of these is possible.
Suppose money supply (M) = $500, price level (P) = 2, and real GDP (Y) = $1,000. Calculate the value of velocity using the equation of exchange.
A) 1 B) 2 C) 4 D) 5