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Which Case in the Below Table Describes What Has Happened Δ\Delta

Question 152

Multiple Choice

Which case in the below table describes what has happened in the U.S. economy over the last decade? Δ\Delta + Δ\Delta Δ\Delta + Δ\Delta %ΔM+=ΔV=ΔP+%ΔY Money growth  Velocity growth  Inflation  Real GDP growth  Case 1  positive  zero  zero  negative  Case 2  large positive  negative  positive  positive  Case 3  zero  large positive  positive  positive  Case 4  positive  positive  zero  large positive  Case 5  positive  positive  large  negative  positive \begin{array}{lllll}&\% \Delta \mathrm{M} +&=\Delta \mathrm{V} &=\Delta \mathrm{P}+&\% \Delta \mathrm{Y}\\\hline &\text { Money growth } & \text { Velocity growth } & \text { Inflation } & \text { Real GDP growth }\\\hline \text { Case 1 } & \text { positive } & \text { zero } & \text { zero } & \text { negative } \\\text { Case 2 } & \text { large positive } & \text { negative } & \text { positive } & \text { positive } \\\text { Case 3 } & \text { zero } & \text { large positive } & \text { positive } & \text { positive } \\\text { Case 4 } & \text { positive } & \text { positive } & \text { zero } & \text { large positive } \\\text { Case 5 } & \text { positive } & \text { positive } & \text { large } & \text { negative } \\& & & \text { positive } & \\\hline\end{array}


A) Case 1
B) Case 2
C) Case 3
D) Case 4
E) Case 5

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