Under a Constant Growth Rate of Money Rule of 3

question 93

Multiple Choice

Under a constant growth rate of money rule of 3 percent in an economy in which Real GDP grows at an average rate of 3 percent and velocity is constant,the inflation rate is

• A) 6 percent.
• B) -6 percent.
• C) 9 percent.
• D) -9 percent.
• E) constant at zero.

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Definitions:

Miles Per Hour

A measure of speed indicating the number of miles traveled in one hour.

Elapsed

Elapsed refers to the amount of time that has passed since the beginning of an event or process.

Following Series

A sequence of numbers or items arranged according to a specific rule or pattern, with each element derived based on the preceding ones.

Miles Per Gallon

A measure of fuel economy that represents the number of miles a vehicle can travel on one gallon of fuel.