Business
Business, 19.06.2020 18:57, luv4appleallday

n 2012, an economy was at full employment. The quantity of money was growing at 8.3 percent a year, the nominal interest rate was 9.5 percent a year, real GDP grew at 5.0 percent a year, and the inflation rate was 3.1 percent a year. Was the velocity of circulation constant? [Hint: Use the quantity theory of money.] If the velocity of circulation was not constant, how did it change and why might it have changed? The velocity of circulation ▼ increased decreased and its change was nothing percent a year.

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