Author Question: According to the quantity theory of money, if the money supply grows at 6, real GDP grows at 2, and ... (Read 145 times)

waynest · **on:** Jun 29, 2018

According to the quantity theory of money, if the money supply grows at 6, real GDP grows at 2, and the velocity of money is constant, then the inflation rate will be

A) 8. B) 6. C) 4. D) 2.

Question 2

Reducing the marginal tax rate on income will

A) raise the return to entrepreneurship and encourage the opening of new businesses.
B) increase the after-tax return on saving, and encourage saving.
C) reduce the tax wedge faced by workers and increase labor supplied.
D) All of the above are correct.