If Velocity Is Growing by 2 Percent Per Year and Real

question 44

Multiple Choice

If velocity is growing by 2 percent per year and real output is growing 6 percent per year, according to the equation of exchange, in order to maintain stable prices, the money supply would have to:

• A)​grow by 3 percent.
• B)​grow by 4 percent.
• C)​grow by 8 percent.
• D)​grow by 12 percent.

---

Definitions:

Positive Emotions

Emotional states or feelings that are desirable and perceived as beneficial, such as happiness, joy, or love.

Joy

A feeling of great pleasure and happiness.

Affection

A feeling of fondness or liking.

Idea

A thought or suggestion as to a possible course of action or a conceptualization of something not yet reality.