The Quantity Theory of Money Predicts That the Inflation Rate

question 143

Multiple Choice

The quantity theory of money predicts that the inflation rate will be equal to ________.

• A) the growth rate of the money supply
• B) the growth rate of real GDP
• C) the growth rate of the money supply + the growth rate of real GDP
• D) the growth rate of the money supply - the growth rate of real GDP

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Definitions:

Range

The positive difference between the highest and lowest score in a distribution. It is a gross measure of variability. Exclusive range is the highest score minus the lowest score. Inclusive range is the highest score minus the lowest score plus 1.

Scores

Numerical values assigned to individual items or responses, representing the magnitude of some measured attribute or characteristic.

Range

The difference between the largest and smallest values in a set of data, representing the spread or dispersion of the data set.

Inclusive Range

The difference between the highest and lowest values in a data set, taking into account both extreme values.