New SIDBI Grade A New Batch Starts on Nov 18

    Register

    Question

    If the money supply grows 5 per cent, and real output grows 2 per cent, prices should rise by

    A 5 per cent. Correct Answer Incorrect Answer
    B more than 5 per cent Correct Answer Incorrect Answer
    C less than 5 per cent. Correct Answer Incorrect Answer
    D none of these answers Correct Answer Incorrect Answer
    E 2 percent Correct Answer Incorrect Answer

    Solution

    If money supply grows by 5%, real output by 2% then price rises by less than 5%. MV = PY

    Practice Next