The Table Below Shows Data for Indonesia Between 2005 and 2006

question 136

Multiple Choice

The table below shows data for Indonesia between 2005 and 2006.

Assume the rate of velocity change is constant. According to the quantity theory of money, Indonesia's inflation rate

• A) is higher in 2005 than in 2006.
• B) was 17.5 percent in 2006.
• C) is 27.1 percent in 2005.
• D) will increase over the 12 months.

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