Suppose that real GDP grows by 3 percent a year, the quantity of money grows 5 percent a year, and velocity does not change. In the long run, the inflation rate equals
A) 3 percent. B) 5 percent. C) 8 percent. D) 10 percent. E) 2 percent.
E
Economics
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Average weekly claims for unemployment insurance, money supply and the index of stock prices are all examples of
A) leading indicators. B) coincident indicators. C) lagging indicators. D) None of the above
Economics
When the Social Security system begins running a deficit, the bonds in the trust fund will be drawn down. The funds to redeem these bonds will have to come from
a. higher taxes, spending reductions in other programs, or additional government borrowing. b. the surplus funds deposited in governmental banking accounts. c. equity capital being liquidated. d. the sale of private equities and securities that the government has been purchasing with the funds.
Economics