Answer:
Option (B) is correct.
Explanation:
The quantity theory of money can be expressed in the form of an equation that is
M × V= P × GDP
where,
M = Money supply
V = Velocity of money
P = Price level
GDP = Gross domestic product
P × GDP is the nominal GDP, it is the amount of required for purchasing the total amount of output. All the transactions are depends upon the income level of the consumers at the full-employment level. So, if there is an increase in the money supply, this will results in higher prices which means that an increase in the money supply over the real gross domestic product would cause the inflation.
Increase in the money supply will increase the nominal GDP but real GDP remains the same. But if the growth rate of money supply is equal to the growth rate of real GDP then there will be no inflation and Real GDP remains constant at the full-employment level, hence, its level of volume doesn't increase if the there is an increase in the money supply.
Therefore, increased growth rate of money supply over the real GDP causes inflation.
Answer:
D. money that is authorized by a central bank and that does not have to be exchanged for gold or some other commodity money
Explanation:
By definition, fiat money is a physical money that is made a legal tender by the government or other authoritative figure.
It is not backed by any physical commodity like silver or gold but only by the government that distributed it . Additionally, if inflation occurs in a country that uses fiat money as a legal tender, the owners will go at a huge loss since it cannot be redeemed and in worst case scenario such as hyperinflation, it will be worthless.
Answer
x and y axis representing
Explanation:
Was an American novelist<span>, </span>short-story writer<span>, and </span>poet. <span>Farrell based his writing on his own experiences, particularly those that he included in his celebrated "Danny O'Neill Pentology" series of five novels.</span>
