Author Question: Suppose the money growth rate is 3 percent, velocity is constant, and real GDP is growing at 2 ... (Read 57 times)

mwit1967 · **on:** Jun 29, 2018

Suppose the money growth rate is 3 percent, velocity is constant, and real GDP is growing at 2 percent. What is the inflation rate?

A) 1 percent
B) 5 percent
C) 3 percent
D) 6 percent

Question 2

The above table shows the distribution of wealth and income in Miseria. The Lorenz curve for wealth would

A) intersect the horizontal axis at 100 percent.
B) bow outward more to the right than does the Lorenz curve for income.
C) lie parallel to the line of equality.
D) become flatter as one moves from left to right.