Multiple Choice
In an economy in which velocity is constant and real output grows at an average rate of 3 percent per year, a 5 percent average rate of growth in the money supply would result in a
A) constant price level
B) slowly increasing price level
C) slowly decreasing price level
D) stable 4 percent growth in real GDP
E) stable 4 percent growth in nominal GDP
Correct Answer:
Verified
Correct Answer:
Verified
Q11: The equation of exchange is<br>A)quantity supplied
Q20: If the Fed expands the money supply,a
Q49: The demand for money<br>A)d and e are
Q74: For monetary policy to be effective in
Q83: An increase in the price level will<br>A)shift
Q132: If money demand increases and the Fed
Q156: When the demand for money is shown
Q178: Historically, hyperinflations have ended when monetary authorities<br>A)seized
Q179: Economic theory suggests that<br>A)increases in the money
Q180: A rising rate of inflation<br>A)makes people more