If Velocity and Output Were Nearly Constant, How Would the Inflation

question 91

Multiple Choice

If velocity and output were nearly constant, how would the inflation rate compare with the money supply growth rate?

• A)The inflation rate would be much higher than the money supply growth rate.
• B)The inflation rate would be about the same as the money supply growth rate.
• C)The inflation rate would be much lower than the money supply growth rate.
• D)The inflation rate cannot be compared with the money supply growth rate because they are independent of each other.

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Definitions:

Generalization

The process of formulating general concepts by abstracting common properties of instances.

Inhibitor

A stimulus signaling that an event is not coming, which elicits a response opposite to the one that the event usually elicits.

Thorndike

An American psychologist known for his work in comparative psychology and the theory of connectionism, emphasizing the role of rewards and punishments in learning.

Reinforcement

A process in operant conditioning that increases the likelihood of a behavior being repeated, either through positive or negative means.