Solved

If the Growth Rate of the Money Supply in an Economy

Question 46

Multiple Choice

If the growth rate of the money supply in an economy is 5%,the growth rate of output is 2%,and the velocity of money is constant,what will the inflation rate in this economy be?


A) 2%
B) 3%
C) 5%
D) 7%

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q41: If <span class="ql-formula" data-value="\vec {

Q42: Use the following to answer questions <br>Figure:

Q43: Which of the following contributed to the

Q44: The economy's aggregate demand curve shows all

Q45: The short-run aggregate supply curve is upward-sloping

Q47: An increase in the growth rate of

Q48: An unexpected outward shift of the economy's

Q49: In the AD-AS model,changes in the growth

Q50: Which of the following best describes the

Q51: Which of the following explains why the