Which of the following predictions can be made using the growth rates associated with the quantity equation, assuming velocity is stable?
A) If the money supply grows at a faster rate than real GDP, there will be inflation.
B) If the money supply grows at a slower rate than real GDP, there will be inflation.
C) If the money supply grows at the same rate as real GDP, the price level will be fall and there will
be deflation.
D) If the money supply grows at the same rate as real GDP, the price level will also increase at the
same rate as real GDP.
Ans: A) If the money supply grows at a faster rate than real GDP, there will be inflation.
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If the Fed engages in quantitative easing, it has likely
A) started paying interest on required reserves. B) increased the federal funds rate by selling private securities. C) increased the discount rate to prevent inflation. D) decreased the discount rate by selling its own securities. E) decreased the federal funds rate to almost zero by buying large sums of securities.
Overall, U. S. citizens and foreign-born residents embrace change that promises overall growth. This is evidenced by which of the following?
(a) Innovation (b) The growth of new industries and the demise of others (c) Population migration from one part of the U.S. to another (d) All of the above
Which of these Presidents increased top marginal income tax rates during his term in his office?
a. franklin d. roosevelt b. john f. kennedy c. ronal reagan d. george w. bush
When regulating a natural monopoly, average cost pricing is usually used rather than marginal cost pricing because
A. average cost pricing leads to a lower market price than marginal cost pricing. B. average cost pricing leads to lower profits than marginal cost pricing. C. average cost pricing allows the firm to earn a normal rate of return on investment, while marginal cost pricing leads to economic losses. D. average cost pricing is more economically efficient than marginal cost pricing.