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QUESTION 1 1 Suppose the money supply increases by 4 % , velocity increases by 4 % , and real output decreases by 3 %

QUESTION

11

Suppose the money supply increases by

4 %,

velocity increases by

4 %,

and real output decreases by

3 % .

What is the rate of inflation or deflation?

. 7 %

inflation

. 3 %

deflation

. 3 %

inflation.

. 5 %

deflation.

. 11 %

inflation.

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