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answering multiple choice questions 1



I’ll put the rest of the questions here
19) the quantity theory of money predicts that, in the long run, inflations results from the:a) velocity of money growing at a faster rate than real GDPb) velocity of money growing at a lower rate than real GDP c) money supply growing at a lower rate than real GDPd) money supply growing at a faster rate than real GDP
20) according to the quantity theory of money, if the money supply grows at 20n percent and real GDP grows at 5 percent, then the inflation rate will be:a) 15%b) 20%c) 25%d) 100%
21) using the quantity equation, if the velocity of money grows at 5 percent, the money supply grows at 10 percent, and real GDP grows at 4 percent, then the inflation rate will be:a) 19%b) 15%c) 11%d) 6%
22) the quantity theory of money implies that the price level will be stable (no inflation or deflation) when the growth rate of the money supply equals:a) 0b) the growth rate of the price levelc) the growth rate of the velocity of moneyd) the growth rate of real GDP
 
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