Economics of Money, Banking and Financial Markets (12th Edition) (What's New in Economics)
Economics of Money, Banking and Financial Markets (12th Edition) (What's New in Economics)
12th Edition
ISBN: 9780134733821
Author: Frederic S. Mishkin
Publisher: PEARSON
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Chapter 14, Problem 2WE
To determine

  1. The growth rate of each aggregate over each of the past three years.
  2. Whether the Fed has been increasing or decreasing the rate of growth of the money supply.
  3. The reason for this being consistent with the needs of the economy.

Concept introduction:

The economy of Country US is growing around 2 % per year and money supply must also increase by around 2 to 3 %. But present increase in money supply is relatively greater than that of required rate.

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