The price of a phone call at a pay phone was 5 cents in 1950 and the price of a first-class stamp was 3 cents. In 2016, the pay phone costs 50 cents for a call and a first-class stamp costs 47 cents. We know that
A) both the nominal and the relative price of phone calls increased from 1950 to 2016.
B) both the nominal prices of phone calls and first-class stamps increased from 1950 to 2016, but the relative price of stamps increased and the relative price of phone calls decreased from 1950 to 2016.
C) all prices increased from 1950 to 2016: Nominal prices of phone calls, first-class stamps, and the relative prices of phone calls and first-class stamps.
D) both the nominal prices of phone calls and first-class stamps increased from 1950 to 2016, but we can't tell if the relative prices increased or decreased without more information.
Answer: B
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Which of the following is correct?
A. The money supply growth rate and the growth rate of velocity can both be changed permanently. B. The money supply growth rate can be changed permanently, but changes in the growth rate of velocity are always temporary. C. The growth rate of velocity can be changed permanently but changes in the money supply growth rate are always temporary. D. Neither the money supply growth rate nor the growth rate of velocity can be changed permanently.
Since 1999, the capital account has recorded
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