According to the simple Quantity Theory of Money,if velocity is constant and real GDP grows by 2% per year,then money supply growth of 3% per year generates
A) an interest rate of 1%
B) an inflation rate of 1%
C) an unemployment rate of 1%
D) an exchange rate of 1%
E) an output gap of 1%
Correct Answer:
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Q1: According to the Quantity Theory of Money,if
Q3: A reduction in the money supply
A) reduces
Q4: Which of the following is most likely
Q5: In practice,effective deflation
A) occurs when the inflation
Q6: For central banks,short term interest rates are
Q7: Using the money supply as the exclusive
Q8: Central banks commonly aim to keep the
Q9: Which of the following events or trends
Q10: If a central bank targets the exchange
Q11: Which of the following is the most
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