Question: Here are 3 monetary policy rules. Assume that PPP, Quantity Theory, and the Fisher effect are correct. [9 points] a.The Swiss National Bank (central bank)

Here are 3 monetary policy rules. Assume that PPP, Quantity Theory, and the Fisher effect are correct. [9 points]

a.The Swiss National Bank (central bank) targets money supply growth and sets it at 6% per year. The growth rate of real Swiss GDP is 2%. What is Switzerland's inflation rate? What money supply growth rate would result in 2% inflation?

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