According to the Monetary Rule,for Price Stability Given Real Growth

question 228

Multiple Choice

According to the monetary rule,for price stability given real growth in the economy of 7% in 2008,the money supply should

• A)decrease by 7%.
• B)decrease 7%.
• C)increase 7%.
• D)only be adjusted to reflect annualized growth rate.
• E)the money supply should increase 7% AND be adjusted to reflect annualized growth rate.

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