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Assuming a Long-Run Relationship, If Nominal Money Supply Grows at a Rate

Question 10

Multiple Choice

Assuming a long-run relationship, if nominal money supply grows at a rate of 6.5%, real output growth is 3.2%, and the inflation rate is 2.8%, what is the percentage change in velocity?


A) 6) 1%
B) 0) 5%
C) 0%
D) -0.1%
E) -0.5%

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