Two countries are experiencing 10% money growth a year. However, country A is growing at 2% and country B is growing at 5%. Which country will have the higher inflation rate?
What will be an ideal response?
According to the quantity theory, countries with a higher level of output will have a lower price level holding the money supply and velocity constant. As a result, the faster growing country will experience lower inflation.
Economics
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If there is a change in the ability of a firm to produce a given level of output with a given level of inputs, we say there is
A) an increase in labor productivity. B) a movement along a given per-worker production function. C) technological change. D) human capital investment.
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Which of the following is NOT a primary center of foreign-exchange trading?
A) New York B) London C) Munich D) Tokyo
Economics