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Suppose That Real Output Is Constant, the Real Monetary Base

Question 32

Multiple Choice

Suppose that real output is constant, the real monetary base is $30 billion and revenues from the inflation tax are $600 million.What is the inflation rate?


A) 5) 0%
B) 3) 6%
C) 2) 0%
D) 1) 2%
E) it cannot be determined from this information

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