The proportionality between the velocity of price movement and the inflationary gap is: | Faculties

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📊 Managerial Economics

Q. The proportionality between the velocity of price movement and the inflationary gap is:

(A) Indirect and irregular
(B) Direct and linear
(C) Irregular and direct
(D) Indirect and non-linear

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✅ Correct Answer: (B) Direct and linear

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