When We Look at the Period from 1960 to 2009

question 14

Multiple Choice

When we look at the period from 1960 to 2009, which of the following is TRUE on an average annual basis for the U.S.?

• A)M1 grew by more than M2, but neither grew as much as GDP
• B)the rate of inflation was about the same as the growth rate of M2
• C)the rate of inflation was slightly higher than the growth rate of M1
• D)the inflation rate was about the same as the growth rate of M2 minus the GDP growth rate
• E)GDP growth exceeded the growth rate of M2 but not M1

---

Definitions:

Billions

A numerical value equal to one thousand million (1,000,000,000) in the short scale used by most English-speaking countries.

Selling Abroad

The act of marketing and selling products or services outside one's own country.

New Beetle

A compact car model introduced by Volkswagen in 1997, serving as the modern interpretation of the original Volkswagen Beetle.

European Monetary Union

A coalition of European countries that have adopted a standardized legal tender, the euro, and have a unified monetary policy managed by the European Central Bank.