If Velocity Is Growing by 2 Percent Per Year and Real

question 44

Multiple Choice

If velocity is growing by 2 percent per year and real output is growing 6 percent per year, according to the equation of exchange, in order to maintain stable prices, the money supply would have to:

• A)​grow by 3 percent.
• B)​grow by 4 percent.
• C)​grow by 8 percent.
• D)​grow by 12 percent.

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Definitions:

Yeasts

Microscopic, single-celled fungi that are used in baking and fermentation processes, helping in the leavening of bread and production of alcoholic beverages.

Protozoans

Single-celled eukaryotic organisms, often parasitic and capable of movement, that belong to the kingdom Protista.

Infestation

The presence of a large number of pests or parasites in a particular area or on a host, causing damage or disease.

Outbreak

The sudden start or increase of a disease or illness in a specific area or among a specific group of people.