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Figure 30-2

Question 136

Multiple Choice

Figure 30-2.On the graph,MS represents the money supply and MD represents money demand.The usual quantities are measured along the axes. Figure 30-2.On the graph,MS represents the money supply and MD represents money demand.The usual quantities are measured along the axes. -Refer to Figure 30-2.At the end of 2009 the relevant money-demand curve was the one labeled MD<sub>2</sub>.At the end of 2010 the relevant money-demand curve was the one labeled MD<sub>1</sub>.Assuming the economy is always in equilibrium,what was the economy's approximate inflation rate for 2010? A) -43 percent B) -57 percent C) 57 percent D) 75 percent
-Refer to Figure 30-2.At the end of 2009 the relevant money-demand curve was the one labeled MD2.At the end of 2010 the relevant money-demand curve was the one labeled MD1.Assuming the economy is always in equilibrium,what was the economy's approximate inflation rate for 2010?


A) -43 percent
B) -57 percent
C) 57 percent
D) 75 percent

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