The Equation of Exchange in Terms of Growth Rate Is

question 11

Multiple Choice

The equation of exchange in terms of growth rate is

• A)Money growth rate + Rate of velocity change = Inflation rate + Real GDP growth rate.
• B)Money growth rate - Rate of velocity change = Inflation rate + Real GDP growth rate.
• C)Money growth rate = Inflation rate - Real GDP growth rate.
• D)Inflation rate = Money growth rate + Rate of velocity change + Real GDP growth rate.
• E)Inflation rate = Real GDP growth rate.

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