Velocity in the Country of Aquilonia Is Always Stable

question 29

Multiple Choice

Velocity in the country of Aquilonia is always stable. In 2018, the money supply was $100 billion, nominal GDP was $500 billion, and the real interest rate was 3 percent. In 2019, the money supply was $105 billion, and real GDP did not change from its level in 2018. What was the approximate nominal interest rate in 2019?

• A) 3 percent
• B) 5 percent
• C) 8 percent
• D) 11 percent

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Definitions:

NAACP

Stands for the National Association for the Advancement of Colored People, a civil rights organization in the United States formed in 1909 to fight for the rights of African Americans.

Summer of Love

Refers to the summer of 1967, when thousands of young people converged on the Haight-Ashbury district of San Francisco, embodying the countercultural movement and promoting peace, love, and freedom.

Woodstock

A landmark music and arts festival held in 1969 in New York, symbolizing the counterculture movement of the 1960s with its message of peace, music, and community.

San Francisco

A major city in California, USA, known for its iconic Golden Gate Bridge, steep streets, and as a center of liberal activism in the United States.