If Real GDP Grows at 4 Percent, the Quantity of Money

question 6

Multiple Choice

If real GDP grows at 4 percent, the quantity of money grows at 6 percent, and velocity does not change, then in the long run the inflation rate is

• A)10 percent.
• B)1.5 percent.
• C)6 percent.
• D)4 percent.
• E)2 percent.

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