According to the Quantity Theory of Money,if the Long-Run Economic

question 68

Multiple Choice

According to the quantity theory of money,if the long-run economic growth rate is 2.5%,by how much should the Fed increase the money supply if it wants inflation to be 2%?

• A) 0.5%
• B) 1.25%
• C) 4.5%
• D) 5%

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