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If a Fixed Money Growth Rate of 4 Percent Per

Question 37

Multiple Choice

If a fixed money growth rate of 4 percent per year is followed and the growth rate of the natural level of real GDP is 4 percent per year, the average rate of inflation is:


A) ​8 percent.
B) ​4 percent.
C) ​zero.
D) ​1-2 percent.

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