Suppose the Annual Growth Rate of Real GDP for the Nation

question 11

Multiple Choice

Suppose the annual growth rate of real GDP for the nation of Svengali is 5% and the growth rate of velocity is 0%.If the money supply growth rate decreases from 4% to 2%,what is the new rate of inflation in Svengali?

• A) -3%
• B) -1%
• C) 3%
• D) 7%

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