# answering multiple choice questions 1

I’ll put the rest of the questions here

19) the quantity theory of money predicts that, in the long run, inflations results from the:
a) velocity of money growing at a faster rate than real GDP
b) velocity of money growing at a lower rate than real GDP
c) money supply growing at a lower rate than real GDP
d) money supply growing at a faster rate than real GDP

20) according to the quantity theory of money, if the money supply grows at 20n percent and real GDP grows at 5 percent, then the inflation rate will be:
a) 15%
b) 20%
c) 25%
d) 100%

21) using the quantity equation, if the velocity of money grows at 5 percent, the money supply grows at 10 percent, and real GDP grows at 4 percent, then the inflation rate will be:
a) 19%
b) 15%
c) 11%
d) 6%

22) the quantity theory of money implies that the price level will be stable (no inflation or deflation) when the growth rate of the money supply equals:
a) 0
b) the growth rate of the price level
c) the growth rate of the velocity of money
d) the growth rate of real GDP