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According to the quantity theory of money, if the longminusrun economic growth rate is 2.5%, by how much should the Fed increase the money supply

According to the quantity theory of money, if the longminusrun economic growth rate is 2.5%, by how much should the Fed increase the money supply if it wants inflation to be 2%?

A.

0.5%

B.

5%

C.

4.5%

D.

1.25%

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