Question

An increase of 1% per annum in the growth rate of the money supply will increase inflation by:

Q: Answer-An increase of 1% per annum in the growth rate of the money supply will increase inflation by: ...

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.

A 0%

B 1%

C 0.5%

D more than 1%

Practice Next

More Economics Questions

In economic terms, the total market value of all final goods and services produced in a given year is known as.........
An increase in savings in an economy typically leads to which of the following?
Which is the first Indian Company to be listed in NASDAQ?
Who has been appointed as the first woman to lead ONGC(Oil and Natural Gas Corporation)?
A short-term government security paper is called ______?
One of the features of a free market economy is
When unemployment of potential workers that is not reflected in official unemployment statistics, due to the way the statistics are collected, it is known ...
In which year was the first Census conducted?
NPS for traders provide a monthly minimum assured pension of what amount after attaining the age of 60 years?
Which of the following institutions have wrote the book ‘Healthy Recipes for Defence’?

Relevant for Exams:

Hey! Ask a query

An increase of 1% per annum in the growth rate of the money supply will increase inflation by:

Detailed Solution

More Economics Questions

Relevant for Exams:

Hey! Ask a query

Please Register/Login