Suppose That for a Given Year Money Growth Is 3

question 127

Multiple Choice

Suppose that for a given year money growth is 3 percent, real GDP growth is 1 percent, and the inflation rate is 2 percent. According to the growth version of the quantity equation, velocity growth would be

• A) 0 percent.
• B) 2 percent.
• C) 3 percent.
• D) 4 percent.

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