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Answer these questions fully.Like big paragraphs 10. a) Given a target rate of ination of 2% and a constant velocity of circulation when would a
Answer these questions fully.Like big paragraphs
10. a) Given a target rate of ination of 2% and a constant velocity of circulation when would a sustained 5% increase in the money supply be acceptable? b) when would an even higher sustained rate of growth in the money supply be acceptable? ll. 12. In the early 19805 the government deregulated the nancial sector allowing banks and building societies to compete with each other for savings and loans. Explain how this affected the velocity of circulation and how it contributed to the abandonment of Monetarism. Quantitative Easing in 2009 (form of increasing the money supply) was argued to have had limited impact on ination and economic growth. Explain why? Hint: credit crunchStep by Step Solution
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