What is the target growth rate in the money supply

Reference no: EM132140913

Question: Assume that the velocity of money is constant and real GDP growth is 2.5%. Janet Yellen and the Fed are targeting a 2% inflation rate. What is the target growth rate in the money supply? How much new money needs to be injected in the coming year to meet the target? Explain.

Reference no: EM132140913

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