A. it is difficult to measure the value of nominal GDP over time
B. there has been very little fluctuation in the money supply over time.
C. it is difficult to measure the demand for money over time D. whether velocity is constant or not may depend on how the money supply is measure.
A. assume that this year’s inflation rate will be the same as last year’s inflation rate
B. merely guess at the inflation rate.
C. assume that this year’s inflation rate will be equal to the average inflation rate over the past 10 years D. Use all available information in forming their expectations.