Using the Quantity Equation,if the Velocity of Money Grows at 5

question 249

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.

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Definitions:

Workers

Individuals engaged in any form of employment or labor to produce goods or provide services.

Industrial Nation

A country with a significant portion of its economy based on manufacturing and industrial activities, often characterized by high levels of technology and infrastructure.

Labor Force Quality

A measure of the skills, education, and productivity of workers in an economy, which impacts economic output and growth.

Economic Growth

An increase in the production of economic goods and services, compared from one period of time to another, typically measured by the change in real GDP.