What does the assumption of constant velocity imply

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Reference no: EM13998369

1) Explain the quantity equation: M.V=P.V

2) What does the assumption of constant velocity imply?

3) If inflation rise from 6 to 8% what happens to real and nominal interest rate?

4) Explain the roles of monetary and fiscal policy in causing and ending Hyperinflations.

5) Define Real and Nominal variable and give an example of each.

Reference no: EM13998369

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