Using the Quantity Equation, If the Velocity of Money Grows

question 7

Multiple Choice

Using the quantity equation, if the velocity of money grows at 5 percent, the money supply grows at 10 percent, and real GDP grows at 4 percent, then the inflation rate will be

• A)19 percent.
• B)15 percent.
• C)11 percent.
• D)6 percent.
• E)5 percent.

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