In which of the following condition(s) the inflation tends to rise or fall?
► When current output is greater than potential output
► When current output is less than potential output
► When there is an output gap
► All of the given options
Currency to deposit ratio & the quantity of money are ___________.
► Negatively related
► Positively related
► Not related
► Incomplete information
The interest rate used in the present value calculation is often referred as:
► Discount rate(correct)
► Inflation rate
► Nominal rate
► Deflation rate
On Sun, Jul 17, 2011 at 3:04 PM, Wahid Pasha <mc090402676@vu.edu.pk> wrote:
In which of the following condition(s) the inflation tends to rise or fall?► When current output is greater than potential output► When current output is less than potential output► When there is an output gap► All of the given optionsCurrency to deposit ratio & the quantity of money are ___________.► Negatively related► Positively related► Not related► Incomplete informationThe interest rate used in the present value calculation is often referred as:► Discount rate(correct)► Inflation rate► Nominal rate► Deflation rateGiven the quantity of money and the price level, what impact on aggregate demand, if any, should result from an increase in the velocity of money?► It should decrease► It should increase► It should remain constant since the quantity of money is constant► Aggregate demand is not influenced by the velocity of money--
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