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Business, 19.06.2020 04:57 halliehedman

Suppose the central bank initially sets the long-run growth rate of the money supply to 5% per year to maintain zero long-run inflation. According to the quantity theory of money, if long-run real GDP growth suddenly falls to 3% but velocity is unchanged, how should the central bank adjust the growth rate of the money supply to maintain zero inflation

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Suppose the central bank initially sets the long-run growth rate of the money supply to 5% per year...
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