If velocity does not change and the quantity of money grows at the same rate as does real GDP, then in the long run

A) the real interest rate is less than the nominal interest rate.
B) the inflation rate equals zero.
C) the nominal interest rate equals zero.
D) the inflation rate equals the growth rate of the quantity of money.
E) the nominal interest rate is less than the real interest rate.


B

Economics

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The above table has the balance of the University National Bank. All figures are in millions of dollars. The desired reserve ratio is 20 percent. What is the value of excess reserves held by the University National Bank?

A) $88 million B) $232 million C) $320 million D) $352 million

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How is dollarization different from monetary union?

What will be an ideal response?

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Dealers get much of their government securities inventories

A) through direct transfers from the Treasury. B) through direct transfers from the Federal Reserve. C) bidding at competitive auctions. D) through purchases from commercial banks.

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A dominant-firm's residual demand curve is

A) the horizontal difference between the market demand curve and the supply curve of the fringe firms. B) the vertical difference between the market demand curve and the supply curve of the fringe firms. C) the demand curve left for the fringe firms after the dominant firm has determined an output level. D) None of the above.

Economics