Figure 30-3 on the Following Graph, MS Represents the Money Supply and Supply

question 98

Multiple Choice

Figure 30-3
On the following graph, MS represents the money supply and MD represents money demand.
-Refer to Figure 30-3. At the end of the first year, the relevant money-supply curve was the one labeled MS₂. At the end of the second year, the relevant money-supply curve was the one labeled MS₁. Assuming the economy is always in equilibrium, what was the economy's approximate inflation rate for the second year?

• A)43 percent
• B)30 percent
• C)-30 percent
• D)14.3 percent

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