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:

Examination Scores

Quantitative measures that represent an individual's level of performance or achievement on a standardized test or examination.

Frequency Distribution

A summary of how often different values occur within a data set, usually presented in table or graph form.

Cumulative Frequency

The total of a frequency and all frequencies so far in a frequency distribution.

Relative Frequency

The ratio of the number of times a particular value occurs to the total number of occurrences.