Economics (MindTap Course List)
Solutions
Economics (MindTap Course List)
The annual average percentage change in Real GDP is 2.3 percent, and the annual average percentage change in velocity is 1.1 percent. Using the monetary rule discussed in the text, what percentage change in the money supply will keep prices stable (on average)?
The change in money supply.
It is given that the annual percentage change in real GDP
It is known that the annual growth rate in money supply is equal to the difference between the average annual growth rate in real GDP and the growth rate in velocity. The change in money supply
Chapter 15 Solutions
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