Which of the Following Predictions Can Be Made Using the Growth

question 59

Multiple Choice

Which of the following predictions can be made using the growth rates associated with the equation of exchange, given that velocity is stable and that the economy moves to its potential output (Y_P) in the long run?

• A) If %∆M > %∆ Y_P , then %∆P > %∆M.
• B) If %∆M > %∆ Y_P , then %∆P > %∆ Y_P.
• C) If %∆M = %∆ Y_P , then %∆P = 0.
• D) If %∆M = %∆ Y_P , then %∆P < 0.

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Definitions:

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An eye condition resulting from diabetes complications that affects the retina's blood vessels, leading to potential blindness.

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Damage to the retina of the eye, which can cause vision impairment.

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