Assuming a Long-Run Relationship, If Nominal Money Supply Grows at a Rate

question 19

Multiple Choice

Assuming a long-run relationship, if nominal money supply grows at a rate of 4.5%, real output growth is 3.2%, and the percentage change in velocity is 2%, what is the inflation rate?

• A)9)7%
• B)5)7%
• C) 4.5%
• D)3)3%
• E)2)5%

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