Multiple Choice
According to the Quantity Theory of Money,if velocity is rising by 1% per year and real GDP growth is 2.5% per year,then maintaining an annual inflation rate of 1.5% would require annual money supply growth of
A) zero percent
B) 1%
C) 2%
D) 3%
E) 4%
Correct Answer:
Verified
Correct Answer:
Verified
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