Velocity in the Country of Aquilonia Is Always Stable

question 141

Multiple Choice

Velocity in the country of Aquilonia is always stable.In 2014,the money supply was $100 billion,nominal GDP was $500 billion,and the real interest rate was 3 percent.In 2015,the money supply was $105 billion,and real GDP did not change from its level in 2014.What was the approximate nominal interest rate in 2015?

• A) 3 percent
• B) 5 percent
• C) 8 percent
• D) 11 percent

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Definitions:

Reliability

How much a testing tool generates consistent and stable outputs over various times.

Validity

Refers to the extent to which a concept, conclusion or measurement is well-founded and likely corresponds accurately to the real world.

Accuracy

The degree to which a measurement or estimation matches the true value or standard.

Reliability

The degree to which an assessment tool produces stable and consistent results over multiple measurements.