In an Economy in Which Velocity Is Constant and Real

question 5

Multiple Choice

In an economy in which velocity is constant and real output grows at an average rate of 4 percent per year,a 4 percent average rate of growth in the money supply would result in:

• A)a constant price level.
• B)a slowly increasing price level.
• C)a rapidly increasing price level.
• D)constant real GDP.
• E)constant nominal GDP.

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Definitions:

Dorsal Notochord

A flexible rod-shaped structure in the embryo of all chordates, including humans, that provides skeletal support and defines the primitive axis of the embryo.

Pharyngeal Pouches

Embryonic features that form structures of the face and neck in vertebrates.

Evolution

The process by which different kinds of living organisms are thought to have developed and diversified from earlier forms during the history of the earth.

Chordate Features

Distinctive characteristics of the Chordata phylum, including a notochord, a dorsal hollow nerve cord, pharyngeal slits, and a post-anal tail, at some stage of development.