If the Growth Rate of the Quantity of Money Is

question 215

Essay

If the growth rate of the quantity of money is 4 percent per year, potential GDP and real GDP grow at 3 percent per year, and velocity does not change, in the long run what is the inflation rate?

---

Definitions:

American Values

The fundamental beliefs and principles that are held to be important in the United States, including liberty, democracy, equality, and individualism.

Global Transmission

The worldwide spread or transfer of cultures, diseases, information, technologies, and other phenomena.

Industrial Capitalism

An economic system characterized by private or corporate ownership of capital goods, production for profit, and competitive markets.

Market

A system or environment where buyers and sellers interact to exchange goods, services, or information.