Business, 14.12.2019 01:31 princessammarah4731

Suppose real gdp is forecasted to grow by 1.58 %, the velocity of money has been stable, and the fed announces an inflation target of 2.10 %. what is the largest money growth rate the fed could implement and still achieve its inflation target? suppose there is a mid-year revision of gdp forecasts that lowers the expected growth rate. ceteris paribus, what impact will this have on the rate of inflation? a) inflation will be higher. b) inflation will be lower. c) inflation will be the same. d) inflation can be either higher or lower.

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Suppose real gdp is forecasted to grow by 1.58 %, the velocity of money has been stable, and the fed...

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