Write out the quantity equation of money

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Write out the Quantity Equation of Money. What do we mean by the velocity of money? The real GDP in the U.S. grows at a rate of 3% in the long-run. If the QTM holds, by how much should money supply increase so that the long-run inflation rate in the U.S. economy is 2%? Explain your answer.

Reference no: EM13886972

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