In an Economy in Which Real Output Grows at an Average

question 96

Multiple Choice

In an economy in which real output grows at an average rate of 3 percent per year,a 7 percent average rate of growth in the money supply would result in a(n) :

• A)inflation rate of 4 percent,if velocity of money in circulation is constant.
• B)inflation rate of -4 percent,if velocity of money in circulation is constant.
• C)$7 increase in the price level each year.
• D)$7 decrease in the price level each year.
• E)increase in the velocity of money in circulation.

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The polite behaviors and actions that are considered appropriate and respectful in social interactions.

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