📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    âš¡ Month End Offer - Flat 52% Off On All Courses! Enroll Now âš¡
    00:00:00 AM Left

    Question

    An increase of 1% per annum in the growth rate of the

    money supply will increase inflation by: 
    A 0% Correct Answer Incorrect Answer
    B 1% Correct Answer Incorrect Answer
    C 0.5% Correct Answer Incorrect Answer
    D more than 1% Correct Answer Incorrect Answer

    Solution

    In the long run, an increase in the money supply typically leads to a proportional increase in the inflation rate, as more money chases the same amount of goods.

    Practice Next
    More Economics Questions

    Relevant for Exams:

    ask-question