Suppose Real GDP and Velocity of Money Remain Constant

question 86

Multiple Choice

Suppose real GDP and velocity of money remain constant.If money supply doubles,then the inflation rate will be:

• A) 10%.
• B) 50%.
• C) 100%.
• D) 200%.

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Definitions:

Costs And Benefits

Costs and benefits refer to the negative and positive outcomes, respectively, that are considered when making decisions or evaluating actions and their impacts.

Social Trap

A situation in which a group of individuals act against their best interests by pursuing short-term gains, leading to a worse situation for all in the long term.

Collective Harm

Damage or injury that affects a group or community rather than an individual.

Self-Interest

Acting in a way that is beneficial to oneself, often driven by personal gain or advantage.