6. a) Suppose growth rate of Real GDP is 6% and the growth rate of velocity is...
Fantastic news! We've Found the answer you've been seeking!
Question:
6. a) Suppose growth rate of Real GDP is 6% and the growth rate of velocity is 3%. If Bangladesh Bank wants to have a 5 % inflation rate, what should be the growth rate of money supply according to the predetermined-money-growth-rate-rule?
b) If Bangladesh Bank increases money supply at a rate that is higher than the rate you found in part a, what will be the impact of that higher than required money growth?
Related Book For
Posted Date: