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a) If the growth rate of the money supply is 6%, velocity is constant, and real GDP grows at 4% per year on average, then the inflation rate will be what %?

b) If the growth rate of the money supply increases to 18%, velocity is constant, and real GDP grows at 5% per year on average, then the inflation rate will be what %?

c) If the growth rate of the money supply increases to 15%, velocity grows at 1%, and real GDP grows at 5% per year on average, then the inflation rate will be what %?

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Joshua Stredder
Joshua StredderLv10
28 Sep 2019

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