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Suppose that a country whose money supply grew by about 20% a year over the long run had an annual inflation rate of about 20%
Suppose that a country whose money supply grew by about 20% a year over the long run had an annual inflation rate of about 20% and that a
country whose money supply grew by about 50% a year had an annual inflation rate of about 50%.
Explain this finding in terms of the equation of exchange.
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