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Consider an economy with a nominal money supply of $100 million. The price level is $25. If output grows at an annual rate of 2%,

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Consider an economy with a nominal money supply of $100 million. The price level is $25. If output grows at an annual rate of 2%, and annual inflation is 5%, how much seignorage revenue will be generated each year? Assume velocity of circulation is constant. Select one: O a. $200,000. O b. $280.000. O C $120,000 O d. $500,000

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