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Author Question: The decrease in the value of the capital that results from its use and obsolescence is A) ... (Read 76 times)

kamilo84

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on: Jun 29, 2018
The decrease in the value of the capital that results from its use and obsolescence is
 
  A) depreciation.
  B) net investment.
  C) appreciation.
  D) deconstruction.
  E) gross investment.

Question 2

Suppose velocity does not change. Then, in the long run, a growth rate of the quantity of money that exceeds growth in real GDP has what effect?
 
  What will be an ideal response?


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vickybb89

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Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

In the long run, growth in the quantity of money that exceeds growth in real GDP brings inflation. With velocity constant, the inflation rate equals the growth rate of the money supply minus the growth rate of real GDP.


kamilo84

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

raenoj

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Reply 3 on: Yesterday
Excellent

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