1. In the equation of exchange, velocity measures

A. Currency as a percentage of GDP

B. Nominal GDP

C. real gdp

D. how frequently money is used

2. if the money supply grows at 8% while velocity decreases at 2% and real gdp increases at 4% then the inflation rate will be:

A. 6%

B. 4%

C. 10%

D. 2%

3. suppose that gasoline prices start increasing raidly, and the clerks at your local convience store have to keel changing the bullboard that advertises gas prices. the productivity lost while they change those prices is

A. a transitory cost

B. a shoeleather cost

c. an illusory cost

d. a menu cost

4. Inflation tends to redistrubute wealth because :

A. contracts,loans,and the tax code are weitten in the nominal terms rather than real terms

b. contracts,loans,and the tax code are written in the real terms rather than nomimal terms

c. contracts,loans,and the tax code are indexed

d. inflation does not tend to redestribute wealth

5. if this years CPI is 185 and last years was 180, how much have prices risen between the base year and this year?

A. 2.7%

b. 85%

C.80%

D.5%