Looking at Historical Evidence from 1990 to 2005 for the United

question 152

Multiple Choice

Looking at historical evidence from 1990 to 2005 for the United States and other countries,which of the following are true?
I. There is a correlation between the growth rate of the quantity theory of money and the growth rate of real GDP.
II. There is a correlation between the growth rate of the quantity theory of money and the inflation rate.

• A) Only I is true.
• B) Only II is true.
• C) Both I and II are true.
• D) Neither I or II is true.

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Definitions:

Average Operating Assets

The average value of assets used in the production process or in generating sales, calculated over a specific period.

Margin

Net operating income divided by sales.

Average Operating Assets

The average value of assets used during a specific period in the day-to-day operations of a business.

Net Operating Income

An entity's income from operations, calculated by subtracting operating expenses from revenues generated from normal business operations, excluding non-operating income and expenses.