Multiple Choice
What is the relationship between inflation and a situation where the velocity of money (V) and real output (Q) were increasing at approximately the same rate?
A) The expansion of money will lead to deflation.
B) It would be impossible for monetary authorities to control inflation.
C) Monetary acceleration would not lead to inflation.
D) Inflation would be closely related to the long-run rate of monetary expansion.
Correct Answer:

Verified
Correct Answer:
Verified
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