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Figure 17-3

Question 283

Multiple Choice

Figure 17-3. On the graph, MS represents the money supply and MD represents money demand. The usual quantities are measured along the axes. Figure 17-3. On the graph, MS represents the money supply and MD represents money demand. The usual quantities are measured along the axes. -Refer to Figure 17-3. At the end of 2009 the relevant money-supply curve was the one labeled MS<sub>1</sub>. At the end of 2010 the relevant money-supply curve was the one labeled MS<sub>2</sub>. Assuming the economy is always in equilibrium, what was the economy's approximate inflation rate for 2010? A) -33 percent B) 17 percent C) 50 percent D) 67 percent
-Refer to Figure 17-3. At the end of 2009 the relevant money-supply curve was the one labeled MS1. At the end of 2010 the relevant money-supply curve was the one labeled MS2. Assuming the economy is always in equilibrium, what was the economy's approximate inflation rate for 2010?


A) -33 percent
B) 17 percent
C) 50 percent
D) 67 percent

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