Multiple Choice
The growth rate of real GDP in Astoria is 7.5%.Assume the growth rate of velocity is constant at a rate of 5%.If Astoria wishes to decrease the inflation rate from the annual rate of 5.99% to a target rate of 4.5% and maintain its current growth rate of real GDP,what will the growth rate of the money supply need to be?
A) 6.49%
B) 7%
C) 8%
D) 8.49%
Correct Answer:
Verified
Correct Answer:
Verified
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