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See questions below [2 points] Assumeyelocity 'J is constant. Also assume the money multiplier p is constant and equals 10. Real GDP Y is growing

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[2 points] Assumeyelocity 'J is constant. Also assume the money multiplier p is constant and equals 10. Real GDP Y is growing at a constant 5% per year. As central bank governor, your target ination rate Tr* is 2% per year. You are committed to a policy of monetary targeting. Which growth rate gm of base money Mt] should you choose? Write answer here. Show work here {optional}. % [2 points] Suppose nominal GDP is growing at a 4% annual rate while the GDP deflator is growing at a 6% annual rate. What is the growth rate of real GDP? Write answer here. Show work here {optional}. %

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