The Rules-Based Monetary Policy Reads: the Annual Growth Rate in the Money

question 100

Multiple Choice

The rules-based monetary policy reads: The annual growth rate in the money supply will be equal to the average annual growth rate in Real GDP minus the growth rate in velocity.If the average growth rate in Real GDP this year is 3 percent and the growth rate in velocity is 2 percent,then the money supply will increase by ______________ percent this year.

• A) 1
• B) 2
• C) 3
• D) 4

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Definitions:

Mirror Image Rule

A principle in contract law that holds that an offer must be accepted exactly as it is presented, without modifications.

Statute Of Frauds

a legal principle that requires certain types of contracts to be in writing and signed by the party to be charged, in order to be enforceable.

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Stands for Uniform Commercial Code, a set of comprehensive laws governing commercial transactions and dealings across the United States.

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Fair and equitable conditions or periods within which payments are to be made under a contract or agreement.