If the Fed makes the quantity of money grow at the same rate as the growth rate

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If the Fed makes the quantity of money grow at the same rate as the growth rate of real GDP and velocity does not change, in the long run what happens to the price level and the inflation rate?

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Foundations of Macroeconomics

ISBN: 978-0132831000

6th edition

Authors: Robin Bade, Michael Parkin

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Question Posted: Feb 01, 2018 08:09 AM

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If the Fed makes the quantity of money grow at the same rate as the growth rate

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A price level is the average of current prices across the entire spectrum of ...View the full answer

Foundations of Macroeconomics

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