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Suppose the growth rate of nominal GDP is 10% per year and the growth rate of real GDP is 2% per year. According to the
Suppose the growth rate of nominal GDP is 10% per year and the growth rate of real GDP is 2% per year. According to the quantity theory of money, the money growth rate is most likely to be:
i think it is 8% as money growth / printing extra money accommodates for the inflation difference of 8% between real and nominal GDP ( eg price hikes are made by growth rates) am i right?
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