If a Country's Rules-Based Monetary Policy Sets the Annual Money

question 30

Multiple Choice

If a country's rules-based monetary policy sets the annual money supply growth rate equal to the average annual growth rate of Real GDP,and velocity is a constant,then the price level

• A) is also constant.
• B) rises in years when Real GDP rises.
• C) rises in years when Real GDP growth is less than average.
• D) rises in years when Real GDP growth is greater than average.

---

Definitions:

Curare

A poison used on arrows and darts for hunting and warfare, derived from various South American plants, which causes paralysis by blocking neuromuscular transmission.

Aversion Therapy

A behavioral therapy technique that involves pairing an unwanted behavior with discomfort to create a negative association.

Antagonist Drug

A type of medication that blocks or dampens the action of neurotransmitters in the brain, often used in the treatment of various psychiatric disorders.

Addictive Drug

A substance that leads to addiction by causing psychological or physical dependence, often altering the brain's chemistry to create a need for regular use.