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Under a Constant Growth Rate of Money Rule of 2

Question 29

Multiple Choice

Under a constant growth rate of money rule of 2 percent in an economy in which Real GDP grows at an average rate of 1 percent and velocity is constant,the inflation rate is


A) 3 percent.
B) -3 percent.
C) 1 percent.
D) -1 percent.
E) constant at zero.

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