Economics 9708 · AS & A Level · Balance of payments

Balance of payments — practice question

During one year, money income in an economy rose by 6%. Over the same period, prices went up by 4%. What can be concluded from this?

  • AReal incomes decreased by 2%.
  • BThe velocity of circulation decreased by 2%.
  • CThe money supply increased by 10%.
  • DThe volume of output increased by 2%.

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