If Real GDP Grows by 3 Percent, the Velocity of Circulation

question 135

Multiple Choice

If real GDP grows by 3 percent, the velocity of circulation does not change, and the quantity of money grows by 3 percent, then in the long run the inflation rate is

• A) 3 percent.
• B) 0 percent.
• C) -3 percent.
• D) -6 percent.
• E) 6 percent.

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Definitions:

Mass Media

Channels of communication that are available to very wide segments of the population.

"Taking a Knee"

A form of protest, particularly in sports, where individuals kneel during the national anthem to call attention to social and political issues, such as racial injustice.

Cultural Capital

The social assets of a person (education, intellect, style of speech, dress, etc.) that promote social mobility in a stratified society.

Examples

Specific instances or cases used to illustrate a concept, principle, or method.