Business, 06.07.2021 15:30 nalisas8329

In 2012 , an economy was at full employment. The quantity of money was growing at 8.3 percent a year, the nominal interest rate was 9.5 percent a year, real GDP grew at 5.0 percent a year, and the inflation rate was 3.1 percent a year. Was the velocity of circulation constant? [Hint: Use the quantity theory of money.] If the velocity of circulation was not constant, how did it change and why might it have changed?

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In 2012 , an economy was at full employment. The quantity of money was growing at 8.3 percent a ye...

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