The table below shows data for Brazil
2006 2007
Real GDP growth rate 3.8 5.4
Inflation rate 4.2 3.7
Assuming the rate of velocity change is constant
A) the growth rate of money increased between 2006 and 2007.
B) the money growth rate was -0.4 percent in 2006.
C) the growth rate of nominal GDP was 1.7 percent in 2006.
D) the demand for money curve shifted leftward in 2006.
A
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Preferential trade agreements have a beneficial trade-diversion effect when they reduce prices for traded goods and stimulate the volume of international trade
a. True b. False Indicate whether the statement is true or false
Monetarists believe that changes in monetary policy would have:
a. only short-term effect on the price level. b. only short-term effect on real GDP. c. only long-term effect on real GDP. d. no effect on price level and real GDP. e. both short-term and long term effect on real GDP.