If real money balances are $2.0 trillion (2017 dollars), and the monetary expansion rate is 25%, what is the annual rate of seigniorage (in billions of 2017 dollars per year)? (assume for simplicity that the government costlessly creates the entire money stock.)

$500 billion

Explanation:

Data provided in the question:

Real money balances = $2.0 trillion = $2,000,000,000,000

Monetary expansion rate = 25%

now,

The annual rate of seigniorage

= Real money balances × Monetary expansion rate

= $2,000,000,000,000 × 0.25

or in billions

=

= $500 billion

there was no passage listed but using the process of elimination i'd say it was d. the high economy would do the opposite. i don't see how low prices would affect it. high unemployment is possible but i feel d is the better answer.

it is d i just took the test