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If Real GDP Increases at an Annual Rate of 4

Question 67

Multiple Choice

If Real GDP increases at an annual rate of 4 percent and velocity increases at a rate of 2 percent per year,then rules-based monetary policy advocates who wish to maintain a stable price level would set the annual money supply growth rate at


A) -2 percent.
B) 0 percent.
C) 1 percent.
D) 2 percent.
E) -1 percent.

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