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Chapter 16, problems 16-8, 16-12, and 16-14 Chapter 15, problems 15-4, 15-14, and 15-16 16-8. Suppose that the quantity of money in circulation is fixed but the income velocity of money doubles. If real GDP remains at its long-run potential level, what happens to the equilibrium price level? (See page 354.) 16-12. Assuming that the Fed judges inflation to be the most significant problem in the economy

  1. Chapter 16, problems 16-8, 16-12, and 16-14
  2. Chapter 15, problems 15-4, 15-14, and 15-16

16-8. Suppose that the quantity of money in circulation

is fixed but the income velocity of money doubles.

If real GDP remains at its long-run potential

level, what happens to the equilibrium price

level? (See page 354.)

 

16-12. Assuming that the Fed judges inflation to be the

most significant problem in the economy

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