If the money supply grows at 5% and real GDP grows at 6%, the quantity theory predicts the inflation rate will be
A) -1%.
B) 1%.
C) 1.2%.
D) 11%.
A
You might also like to view...
Consistent with the mercantilist theory, the colonies had
(a) a trade deficit with England. (b) a trade surplus with England. (c) a balance of trade with England. (d) about an equal number of annual trade deficits and surpluses over the years.
The problem of scarcity
a. has been "cooked up" by disenchanted anticapitalists. b. exists because resources are limited relative to wants. c. is solved by promoting economic growth. d. is caused by artificially high prices.
When impoverished peasants in South America and Asia cannot be convinced to stop growing crops for drug production, their situation demonstrates how poverty
a. lowers worker productivity. b. leads to environmental problems. c. supports transnational crime. d. creates health threats.
(Consider This) Suppose that coffee growers sell 200 million pounds of coffee beans at $2 per pound in 2015 and 240 million pounds for $3 per pound in 2016. Based on this information, we can conclude that the:
A. law of supply has been violated. B. law of demand has been violated. C. demand for coffee beans has increased. D. supply of coffee beans has increased.