In an Economy in Which Velocity Is Constant and Real

question 5

Multiple Choice

In an economy in which velocity is constant and real output grows at an average rate of 4 percent per year,a 4 percent average rate of growth in the money supply would result in:

• A)a constant price level.
• B)a slowly increasing price level.
• C)a rapidly increasing price level.
• D)constant real GDP.
• E)constant nominal GDP.

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Definitions:

Patriotic Spirit

Refers to a sense of national pride and loyalty towards one’s country, often manifested through the celebration of national history, culture, and values.

Liberal Congress

Refers to a legislative body, typically of a country, that is dominated or influenced by liberal political ideologies, focusing on progress, reform, and the protection of individual rights.

Legal Discrimination

Involves the enactment and enforcement of laws that differentiate treatment of groups or individuals based on attributes like race, gender, or religion.

Civil Rights Act of 1964

The Civil Rights Act of 1964 is landmark U.S. legislation that outlawed discrimination based on race, color, religion, sex, or national origin, primarily in public accommodations and employment.