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Author Question: The Quantity Explanation for InflationAccording to the quantity theory of money, if the money supply ... (Read 57 times)

C0DxHalo

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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%
Macroeconomics ¦ Acemoglu, Laibson, List ¦ 3rd Edition
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Marked as best answer by C0DxHalo on Nov 23, 2022

reactx

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Reply #1 on: Nov 23, 2022
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C0DxHalo

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Reply 2 on: Nov 23, 2022
YES! Correct, THANKS for helping me on my review

gcook

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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