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  3. Study Set
    Macroeconomics Study Set 9
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    Exam 4: Money and Inflation
  5. Question
    If the Money Supply Grows at 5% and Real GDP
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If the Money Supply Grows at 5% and Real GDP

Question 20

Question 20

Multiple Choice

If the money supply grows at 5% and real GDP grows at 6%,the quantity theory predicts the inflation rate will be


A) -1%.
B) 1%.
C) 1.2%.
D) 11%.

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