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Business, 12.03.2021 15:30 taylord4230

The Brazilian economy is growing at a 6% annual rate in real terms. The Bank of Brazil is expanding its monetary base (e. g., money M1) at a rate of 30% per year. The Brazilian government bonds yield 26%. What prediction would a monetary economist make for the inflation rate if she believes in quantity theory of money and assumes that the velocity of money is stable

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