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1. What happened to real income growth and velocity growth in these two time periods? Is this consistent with the quantity theory of money? Period

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1. What happened to real income growth and velocity growth in these two time periods? Is this consistent with the quantity theory of money?

Period Inflation Money Growth Nominal Income Growth Treasury Bill Rate 1975-79 1980-89 11.8 4.9 17.1 9.6 15.1 7.3 10.1 11.3

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