The growth rate of each aggregate over each of the past three years. Whether the Fed has been increasing or decreasing the rate of growth of the money supply. 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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Chapter 14, Problem 2WE

To determine

The growth rate of each aggregate over each of the past three years.

Whether the Fed has been increasing or decreasing the rate of growth of the money supply.

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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