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Money and interest rates

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Question 3

The money supply, the velocity of circulation, the price level, and the volume of transactions all have a base year index (year 1) of 100. In year 2, the index numbers were:

  • the money supply: 121
  • the velocity of circulation: 98
  • the volume of transactions: 110

To the nearest whole number, what was the price level index in year 2?

103

108

109

113

Money and interest rates Questions

  1. A Level
  2. /Economics
  3. /Money and interest rates