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If a Country's Rules-Based Monetary Policy Sets the Annual Money

Question 30

Multiple Choice

If a country's rules-based monetary policy sets the annual money supply growth rate equal to the average annual growth rate of Real GDP,and velocity is a constant,then the price level


A) is also constant.
B) rises in years when Real GDP rises.
C) rises in years when Real GDP growth is less than average.
D) rises in years when Real GDP growth is greater than average.

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