ME 4244 : Exam 3 Topics 2013_4
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Chapter 3: practice problems: suppose there is a reduction in aggregate real money demand, that is, a negative shift in the aggregate real money demand function. Between 1984 and 1985, the money supply in the u. s. increased to . 0 billion from . 3 billion, while that of brazil increased to 106. 1 billion cruzados from 24. 4 billion. Over the same period, the u. s. consumer price index rose to 100 from a level of 96. 6, while the corresponding index for. Brazil rose to 100 from a level of only 31. Calculate the 198401985 rates of money supply growth and inflation for u. s. and brazil, respectively.
