Two Countries, Alpha and Beta, Have the Same Levels of Nominal

question 7

Multiple Choice

Two countries, Alpha and Beta, have the same levels of nominal and real GDP. Each dollar in Alpha is used more frequently than each dollar in Beta. Therefore, it must be the case that ________ in Alpha than in Beta.

• A)the rate of inflation is greater
• B)the money stock is smaller
• C)the price level is greater
• D)the velocity is lower

---

Definitions:

Servicing Materials

Supplies and materials used in the maintenance or repair of equipment and machinery to ensure their proper functioning.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels of the organization.

Variable Cost

Expenses that vary directly with levels of output or production volume.

Spending Variance

The difference between the actual amount spent and the budgeted amount in financial management, often analyzed in cost accounting.