Using the Equation of Exchange, If Inflation Is 1

question 82

Multiple Choice

Using the equation of exchange, if inflation is 1.5%, real output grows by 3.0%, and the growth rate of money is 5.0%, the change in the velocity of money is:

• A) Zero; velocity is constant.
• B) -0.5%.
• C) +4.5%.
• D) +0.5%.

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Definitions:

One-Dimensional Array

A linear sequence of elements, all of the same type, accessible via their index.

Outer Braces

The enclosing brackets used to define the scope of a code block, such as in a function or conditional statement.

Two-Dimensional Array

A type of data structure that stores elements in a grid or matrix format, allowing for indexing by two coordinates, row and column.

Two-Dimensional Arrays

Data structures that organize data in a grid-like format, consisting of rows and columns, allowing for storage of data in a tabular form.