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Assuming a Long-Run Relationship, If Real Output Growth Is 2

Question 37

Multiple Choice

Assuming a long-run relationship, if real output growth is 2.8% and velocity stays constant, by how much would the money supply have to grow to achieve an inflation rate of 2%?


A) 4) 8%
B) 2) 8%
C) 2) 0%
D) 0) 8%
E) the answer can't be determined from this information

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