If Real GDP Has Grown at a Rate of 3

question 31

Multiple Choice

If real GDP has grown at a rate of 3%, but nominal money supply and the price level have both grown by 5%, then the income velocity of money must have

• A)stayed constant
• B)decreased by 2%
• C)decreased by 3%
• D)increased by 3%
• E)increased by 8%

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Definitions:

Agile Development

A methodology in software development focusing on iterative progress, collaboration, and adapting to change.

Waterfall Model

A sequential design process often used in software development, where progress is seen as flowing steadily downwards through phases such as conception, initiation, analysis, design, construction, testing, and maintenance.

Waterfall Method

A linear and sequential approach to software development, proceeding from concept through design, implementation, testing, deployment, and maintenance.

Development Cycle

Refers to the step-by-step process of developing a product or system, often mirroring the phases of the SDLC.