If the Rate of Growth in Real GDP Exceeds the Rate

question 21

True/False

If the rate of growth in real GDP exceeds the rate of growth in the money supply,the quantity theory of money predicts a price deflation.

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Definitions:

International Bartering

The exchange of goods or services between parties from different countries without using money.

Countertrade

A form of international trade in which goods or services are exchanged for other goods or services, rather than for cash.

Less-Developed Country

A country characterized by low levels of industrialization, socioeconomic development, and often a low standard of living among its population.

World Bank

An international financial institution that provides loans and grants to the governments of poorer countries for the purpose of pursuing capital projects.