On average per capita GDP grows at 2% a year. Population grows by 2% a year. The Central Bank would like to implement an annual ination rate of 1%….

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25. On average per capita GDP grows at 2% a year. Population grows by 2% a year. The Central Bank would liketo implement an annual inflation rate of 1%. Assuming the velocity of money is constant, the annual rate ofgrowth of the money supply should be: a. 0% d. 3% b. 1% e. 5% c. 2%