It is sometimes suggested that the Federal Reserve should try to achieve zero inflation. If we assume
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It is sometimes suggested that the Federal Reserve should try to achieve zero inflation. If we assume that velocity is constant, does this zero-inflation goal require that the rate of money growth equal zero? If yes, explain why. If no, explain what the rate of money growth should equal.
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No if the velocity of money V is constant achieving zero inflation does not necessarily require a zero rate of money growth M Heres why The Quantity E...View the full answer
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