According to the Quantity Theory of Money, If the Money

question 26

Multiple Choice

According to the quantity theory of money, if the money supply grows at 6%, real GDP grows at 2%, and the velocity of money is constant, then the inflation rate will be

• A)12%.
• B)8%.
• C)6%.
• D)4%.
• E)2%.

---

Definitions:

Case Study Method

A research strategy that involves an in-depth investigation of a single subject, group, or event to explore causation and find underlying principles.

Neurotics

individuals experiencing neurosis, showing symptoms of stress, anxiety, and obsessive behavior without a break from reality.

Passive Therapy

A treatment approach where the patient undergoes intervention with minimal active effort or participation, often relying on external actions.

Intellectual

Relating to the ability to think and understand ideas and information at a high level of complexity.