8 Comments

1. 

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2. 

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7. 

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8. 

   musty on December 9, 2016 at 3:05 pm

   Very helpful.
   please help me with this..
   suppose a country has a money demand function (M/P)=KY, where k is a constant parameter. The money supply grows by 12% per year, and the real income grows by 4% per year.
   a. what is the average inflation rate?
   b. how would inflation be different if real income growth were higher? explain.