Author Question: The Quantity Explanation for InflationAccording to the quantity theory of money, if the money supply ... (Read 30 times)

C0DxHalo · **on:** Nov 23, 2022

Question 1

The Quantity Explanation for Inflation

According to the quantity equation, if the money supply grows at 10%, the velocity of money grows at 6%, and real output grows at 8%, then the inflation rate will be ________. (Round to the nearest tenth when appropriate.)
◦ 4%
◦ 4.8%
◦ 8%
◦ 7.5%

Question 2

The Quantity Explanation for Inflation

According to the quantity theory of money, if the money supply grows at 5%, real output grows at 7%, and the velocity of money is constant, then the inflation rate will be ________. (Round to the nearest tenth when appropriate.)
◦ 0.7%
◦ -2%
◦ 35%
◦ 12%

reactx · **Reply #1 on:** Nov 23, 2022

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