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If the Fed Were Required to Maintain an Absolutely Constant

Question 37

Multiple Choice

If the Fed were required to maintain an absolutely constant growth rate of high-powered money,then the growth rate of the money supply


A) would be zero.
B) would be constant at the growth rate of H.
C) would be constant but not necessarily at the growth rate of H.
D) would fluctuate along with the parameters in the money-creation formula.

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