Given the following data what should be the money growth under monetary targeting? Data: Income elasticity of money demand = 1, expected real GDP growth = 6%, Inflation rate = 4%.
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1 mark, −0.33MacroeconomicsDemand for money and monetary theoriesMonetarism, neutrality and monetary rulesModerateabout 1 min
UoH 2020 Question 95: Demand for money and monetary theories
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Demand for money and monetary theories has come up 82 times in 7 exams since 2005.
What this question tests
This question is on Monetarism, neutrality and monetary rules, part of Demand for money and monetary theories in Macroeconomics.
The long-run neutrality of money and the case for rules over discretion.
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