Multiple Choice
According to the quantity theory of money, if money is growing at a 10 percent rate and real output is growing at a 3 percent rate, but velocity is growing at increasingly faster rates over time as a result of financial innovation, the rate of inflation must be:
A) increasing.
B) decreasing. 7
C) percent.
D) constant.
Correct Answer:
Verified
Correct Answer:
Verified
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