Multiple Choice
According to the growth version of the quantity equation, if the money supply increases by 10 percent while velocity stays constant and real GDP increased by 12 percent, then:
A) the economy experienced hyperinflation.
B) the economy experienced a recession.
C) the economy experienced a deflation.
D) the unemployment rate increased by 2 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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