Assume Nominal Money Supply Grows by 6% and Real GDP

question 34

Multiple Choice

Assume nominal money supply grows by 6% and real GDP grows by 4%.We can conclude that the rate of inflation is about

• A)+6%
• B)+2%
• C)+6% minus the percentage change in velocity
• D)+2% minus the percentage change in velocity
• E)+2% plus the percentage change in velocity

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Definitions:

F Statistic

A ratio of variance estimates used in statistical analysis to test the significance of multiple group means.

Main Effect

Refers to the direct impact of an independent variable on a dependent variable in a statistical model.

P-Value

A statistical metric indicating the likelihood of obtaining the observed results when the null hypothesis of a study is true.

F Statistic

A ratio used in ANOVA and regression analysis to determine if the variances between means are statistically significant.