According to A.P. Lerner, splitting income equally among individuals was most appropriate for maximizing combined satisfaction

A highly liquid asset

A) generally has a very limited market for its resale. B) has high transaction costs associated with its sale. C) must be held for a substantial period of time. D) can be disposed of easily without loss of value.

If real GDP grows by 3 percent, the velocity of circulation does not change, and the quantity of money grows by 5 percent, then in the long run the inflation rate is

A) 8 percent. B) -5 percent. C) 2 percent. D) 3 percent. E) -2 percent.