Multiple Choice
If the average price level increases 10 percent per year,and the velocity of money is 2,then:
A) the inflation rate is 10 percent.
B) the inflation rate is 5 percent.
C) the inflation rate is 2 percent.
D) the velocity of money will increase.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q60: If an economy produces 1,000 units of
Q68: The quantity theory of money states explicitly
Q69: Most economists agree that the best rate
Q76: Inflation rates over the last 40 years
Q77: Deflation:<br>A)is a sustained fall in the aggregate
Q80: Suppose the nominal interest rate is 4
Q90: If an economy produces 3,000 units of
Q138: The neutrality of money is the idea
Q160: The time, money, and effort one has
Q161: When an economy's actual output is greater