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Suppose that we produce a graph with the annual inflation rate on the y-axis and the growth rate of ...

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Suppose that we produce a graph with the annual inflation rate on the y-axis and the growth rate of ...

Suppose that we produce a graph with the annual inflation rate on the y-axis and the growth rate of the money supply minus the growth rate of real GDP on the x-axis. We plot the averages of each of these quantities over the past 50 years on the graph. If the quantity theory of money is approximately correct, then ________.

▸ each country's point will lie approximately on a horizontal line

▸ each country's point will lie approximately on the 45° line

▸ each country's point will lie approximately on some upward-sloping line

▸ each country's point will lie approximately on a vertical line

Textbook

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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JRAD814

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More solutions for this book are available here

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bundlecrap Author

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Thank you, thank you, thank you!

jasonbourne

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Thanks for your help!!

Goku935

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Smart ... Thanks!

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