If the government increases the money supply by 50 percent, Ask an Expert

Economics

If the government increases the money supply by 50%, and the velocity of money and real GDP remain constant

a) what percentage will the inflation tax be?
b) what percentage increase or decrease will the value of real cash balances be?

Please show steps and reasoning.

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9293620

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