If the money supply grows by 4% and the real money supply is $100 billion, real seignorage is:

Name: If the money supply grows by 4% and the real money supply is $100 billion, real seignorage is:
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Quizplus · Accepted Answer

Real seignorage is the increase in the value of money due to the increase in the money supply. Here, the real money supply is $100 billion and the money supply grew by 4%. Therefore, the increase in the money supply is 4% of $100 billion, which is $4 billion. So, the real seignorage is $4 billion.

If the Money Supply Grows by 4% and the Real