Assume that the velocity of money is constant and real gdp


Question: Assume that the velocity of money is constant and real GDP growth is 2.5%. Janet Yellen and the Fed are targeting a 2% inflation rate. What is the target growth rate in the money supply? How much new money needs to be injected in the coming year to meet the target? Explain.

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Microeconomics: Assume that the velocity of money is constant and real gdp
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