The gold standard was the major system of exchange rate determination

According to the data in the table above, real GDP grew at a rate of ________ between year 1 and year 2

A) 10 percent B) 1 percent C) 50 percent D) 5 percent E) 55 percent

According to the quantity theory of money, if the money supply grows at 6%, real GDP grows at 2%, and the velocity of money is constant, then the inflation rate will be

A) 8%. B) 6%. C) 4%. D) 2%.