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Assuming a Long-Run Relationship, If Nominal Money Supply Grows at a Rate

Question 50

Multiple Choice

Assuming a long-run relationship, if nominal money supply grows at a rate of 5%, real output growth is 3%, and the inflation rate is 2%, what is the percentage change in velocity?


A) 5%
B) 2%
C) 1%
D) 0%
E) -1%

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