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Question: If real GDP grows by 3 percent, the velocity of circulation grows by 4 percent, and the quantity ...

Show transcribed image text If real GDP grows by 3 percent, the velocity of circulation grows by 4 percent, and the quantity of money grows by 3 percent, then in the long run the inflation rate is 4 percent. 10 percent. -4 percent. 7 percent. 0 percent. If the Fed increases the quantity of money, then aggregate demand increases and the AD curve shifts rightward. the quantity of real GDP demanded decreases and there movement up along the AD curve the quantity o real GDP demanded increases and there is a movement down along the AD curve. aggregate demand decreases and the AD curve shifts leftward. both the aggregate demand curve and the aggregate supply curve shift leftward. If the currency drain ratio is 30 percent and the desired reserve ratio is 10 percent, the money multiplier is 0.80. 3.25. 10.0. 1.25.

If real GDP grows by 3 percent, the velocity of circulation grows by 4 percent, and the quantity of money grows by 3 percent, then in the long run the inflation rate is 4 percent. 10 percent. -4 percent. 7 percent. 0 percent. If the Fed increases the quantity of money, then aggregate demand increases and the AD curve shifts rightward. the quantity of real GDP demanded decreases and there movement up along the AD curve the quantity o real GDP demanded increases and there is a movement down along the AD curve. aggregate demand decreases and the AD curve shifts leftward. both the aggregate demand curve and the aggregate supply curve shift leftward. If the currency drain ratio is 30 percent and the desired reserve ratio is 10 percent, the money multiplier is 0.80. 3.25. 10.0. 1.25.