The growth in the velocity (V) has been steady at about 1%. We would like inflation to be 2%. If the economy grows at 2.5%, how fast should we let the money supply (M) grow? A.4.5% B.2.5% C.3.5% D.2.0%.

The growth in the velocity (V) has been steady at about 1%. We would like inflation to be 2%. If the economy grows at 2.5%, how fast should we let the money supply (M) grow? A.4.5% B.2.5% C.3.5% D.2.0%.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: Money Growth And Intlation

Section: Chapter Questions

Problem 4QR

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