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Suppose a Government Prints a Large Quantity of Money to Pay

Question 19

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Suppose a government prints a large quantity of money to pay its debts to domestic creditors,and yet prices do not subsequently rise.Use the equation % Δ\Delta M + % Δ\Delta V ≈\approx % Δ\Delta P + % Δ\Delta Y to describe what may have happened.

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Since %blured imageM is known to be positive and %blured imageP ...

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