15. Consider an economy where per capita GDP grows at 4% a year. Population grows by 2% a year. The Central Bank would like to implement an annual inflation rate of 1%. Assuming the velocity of money is constant, the annual rate of growth of the money supply should be: 0% ن ف نے b. C. 2% 3% d. 5% e. 7%

15. Consider an economy where per capita GDP grows at 4% a year. Population grows by 2% a year. The Central Bank would like to implement an annual inflation rate of 1%. Assuming the velocity of money is constant, the annual rate of growth of the money supply should be: 0% ن ف نے b. C. 2% 3% d. 5% e. 7%

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter14: Macroeconomic Policy: Tradeoffs, Expectations, Credibility, And Sources Of Business Cycles

Section: Chapter Questions

Problem 8E

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