If the money supply grows at 5% and real GDP grows at 6%, the quantity theory predicts the inflation rate will be

Financial disintermediation occurs when:

a. Individuals withdraw funds from financial intermediaries and invest them elsewhere. b. Businesses no longer issue stock. c. Individuals no longer trade securities in the secondary market. d. None of the above. e. Businesses no longer borrow directly in the bond market.

Refer to the information provided in Figure 2.5 below to answer the question(s) that follow. Figure 2.5Refer to Figure 2.5. The marginal rate of transformation in moving from Point A to Point B is

A. -2/3. B. -1.5. C. -3. D. -30.