Another way to describe the growth rate of spending is:

A. the growth rate of real GDP.
B. the growth rate of nominal GDP.
C. the growth rate of the velocity of money.
D. the growth rate of the money supply.

Ans: B. the growth rate of nominal GDP.

Economics

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In a liquidity trap, monetary policy has ________ effect on aggregate spending because a change in the money supply has ________ effect on interest rates

A) no; no B) no; a large C) no; a small D) a large; a large

Economics

You took out a loan one year ago at a nominal interest rate of 7.5%. The CPI stood at 173.2 at the time and you expected it to rise to 178.6 over the year. Today the CPI is actually 179.5

Calculate the expected real interest rate on the loan and the real interest rate on the loan.

Economics