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
Given 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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