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If the USMoney Supply Increases from $7

Question 69

Multiple Choice

If 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.

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