Multiple Choice
According to the simple Quantity Theory of Money,if velocity is constant and real GDP grows by 2% per year,then money supply growth of 3% per year generates
A) an interest rate of 1%
B) an inflation rate of 1%
C) an unemployment rate of 1%
D) an exchange rate of 1%
E) an output gap of 1%
Correct Answer:
Verified
Correct Answer:
Verified
Q29: Which of the following is the most
Q30: A reduction in the money supply<br>A) reduces
Q31: Quantitative Easing refers to<br>A) A dramatic increase
Q32: The monetary base consists of<br>A) gold and
Q33: Italy and the United Kingdom abandoned their
Q34: Which of the following events or trends
Q35: Suppose that as sales of goods shift
Q36: If the central bank follows the Taylor
Q38: A low,positive rate of price inflation<br>A) allows
Q39: When the central bank undertakes an open