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5 [1w n ur Suppose V is constant, M is growing 5% per year, Y is growing 2% per year, and r = 4. a.

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5\" [1w n ur Suppose V is constant, M is growing 5% per year, Y is growing 2% per year, and r = 4. a. Solve for i. b. If the Fed increases the money growth rate by 2 percentage points per year, find AI. 0. Suppose the growth rate of Yfalls to 1 % per year. - What will happen to 7:? - What must the Fed do if it wishes to keep 72' constant? '37

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