If Real GDP Increases at an Annual Rate of 3

question 35

Multiple Choice

If Real GDP increases at an annual rate of 3 percent and velocity increases at a rate of 2 percent per year,then rules-based monetary policy advocates who wish to maintain a stable price level would set the annual money supply growth rate at

• A)-2 percent.
• B)0 percent.
• C)1 percent.
• D)6 percent.
• E)-1 percent.