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In Cagan's model of hyperinflation, suppose that expectations of ination at time t are equal to ination at time t-l. 0 If money supply is

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In Cagan's model of hyperinflation, suppose that expectations of ination at time t are equal to ination at time t-l. 0 If money supply is constant, then prices in this model will converge to a steady state. 0 If money supply is constant, then prices will not converge to a steady state. 0 If money supply is constant, then prices may converge to a steady state depending upon how money demand responds to income. 0 If money supply is constant, then prices may converge to a steady state depending upon how money demand responds to interest rates

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