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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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