Which of the following predictions can be made using the growth-08849
Which of the following predictions can be made using the growth rates associated with the equation of exchange, given that velocity is stable and that the economy moves to its potential output (YP) in the long run?
This multiple choice question (MCQ) is related to the book/course
vu eco401 Economics.
It can also be found in
vu eco401 Final Term - Quiz No.9.
Which of the following predictions can be made using the growth rates associated with the equation of exchange, given that velocity is stable and that the economy moves to its potential output (YP) in the long run?
If the money supply grows at a faster rate than growth in YP, there will be inflation
If the money supply grows at the same rate as growth in YP, the price level will fall and there will be deflation.
If the money supply grows at the same rate as growth in YP, the price level will also increase at the same rate as growth in YP.
None of the given options
