Multiple Choice
Suppose the U.S. money supply increases from $7.6 trillion to $8.3 trillion. If there is zero real economic growth, and velocity stays constant, then according to the quantity theory of money, the U.S. inflation rate during this period would be:
A) 3 percent.
B) 6 percent.
C) 9 percent.
D) 12 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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