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Question
Using the equation of exchange, if real GDP increases by 3.0%, the velocity of money grows by 1.0% and the growth rate of money is 3.0%; what is the rate of inflation?A. +1.0%
B. It is constant or a 0% change
C. It is the same as the growth rate of money, or 3.0%
D. -1.0%
Answer
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