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Would love it if you can explain me what seignorage is and how is calculated. I have an example: Suppose the money multiplier is 5,

Would love it if you can explain me what seignorage is and how is calculated. I have an example:

Suppose the money multiplier is 5, the real interest rate is 3%, the long- run real rate of growth is 2%, the current money supply is $200 billion, velocity is constant, and the nominal interest rate is 10%. Seigniorage is:

Please explain in layman's terms, thanks.

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