If the Quantity of Money Starts to Grow More Rapidly

question 232

Multiple Choice

If the quantity of money starts to grow more rapidly than real GDP and velocity does not change, the result is

• A) more rapid growth in potential GDP.
• B) the inflation rate rises.
• C) an increase in investment.
• D) an eventual slowing in the growth rate of the quantity of money.
• E) slower growth in the price level.

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