Under a constant growth rate of money rule of 5 percent in an economy in which Real GDP grows at an average rate of 5 percent and velocity is constant, the inflation rate is
A) 5 percent.
B) -5 percent.
C) 25 percent.
D) -25 percent.
E) constant at zero.
E
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Which of the following best describes how the real balance effect works?
A) The price level falls, purchasing power rises, a person's monetary wealth rises, and the person buys fewer goods and services. B) The price level rises, purchasing power rises, a person's monetary wealth decreases, and the person buys more goods and services. C) The price level rises, purchasing power falls, a person's monetary wealth falls, and the person buys fewer goods and services. D) The price level falls, purchasing power rises, a person's monetary wealth falls, and the person buys fewer goods and services. E) none of the above
Source, message, and channel factors are ___ in the communications model
Fill in the blank(s) with the appropriate word(s).