If a Country's Rules-Based Monetary Policy Sets the Annual Money

question 30

Multiple Choice

If a country's rules-based monetary policy sets the annual money supply growth rate equal to the average annual growth rate of Real GDP,and velocity is a constant,then the price level

• A) is also constant.
• B) rises in years when Real GDP rises.
• C) rises in years when Real GDP growth is less than average.
• D) rises in years when Real GDP growth is greater than average.

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Definitions:

Christchurch Earthquake

A significant seismic event that struck the Christchurch region of New Zealand in February 2011, causing widespread damage and fatalities.

Canterbury Earthquake

A significant seismic event that occurred in the Canterbury region of New Zealand, most notably in February 2011, causing widespread damage and loss of life.

Magnitude

A measure of the amount of energy released by an earthquake; used to compare sizes of earthquakes.

Landslide

The movement of rock, earth, or debris down a slope due to gravity, often triggered by factors like rainfall, earthquakes, or human activity.