katiekellerman2387 katiekellerman2387

07-08-2020
Business

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if the growth rate of the money supply is 8%, velocity is constant, and reald GDP grows at 2% per year on average, then the inflation rate will be

Respuesta :

ewomazinoade ewomazinoade

11-08-2020

Answer:

4%

Explanation:

The quantity theory of money states that :

Money supply x Velocity = price x real GDP

8% = 2% x price

Price = 4%

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