If velocity remains constant, which of the following examples would cause inflation?
a. Money supply increases by 8 percent; real GDP increases by 6 percent.
b. Money supply increases by 5 percent; real GDP increases by 5 percent.
c. Money supply increases by 4 percent; real GDP increases by 7 percent.
d. Money supply increases by 9 percent; real GDP increases by 10 percent.
a. Money supply increases by 8 percent; real GDP increases by 6 percent.
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What takes place in the indirect finance market?
A) Corporate and government bonds are sold to savers. B) Government purchases of buildings and equipment are sold to the highest bidder. C) Part ownership of corporations is sold in the form of stocks. D) Deposits of savers are accepted and lent to borrowers.
Which of the following is a negative externality connected to attending college?
A) The fact that completion of a college degree acts as a signaling mechanism to employers. B) The fact that other costs, such as books and materials, are incurred in addition to tuition and fees. C) The fact that your college has required that all individuals living in student housing either get or show they have already obtained vaccinations against all communicable diseases. D) The fact that the people in the next room play loud music at hours you want to sleep. E) The fact that you will get benefits from college that you don't currently anticipate.