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Macroeconomics 12th Edition by Michael Parkin
Edition 12ISBN: 978-0133872279Macroeconomics 12th Edition by Michael Parkin
Edition 12ISBN: 978-0133872279 Exercise 6
Suppose that the velocity of circulation of money is constant and real GDP is growing at 3 percent a year.
a. To achieve an inflation target of 2 percent a year, at what rate would the central bank grow the quantity of money
b. At what growth rate of the quantity of money would deflation be created
a. To achieve an inflation target of 2 percent a year, at what rate would the central bank grow the quantity of money
b. At what growth rate of the quantity of money would deflation be created
Explanation
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This suggests that for a defl...
Macroeconomics 12th Edition by Michael Parkin
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