Suppose the Money Supply Grew at an Average Annual Rate

Multiple Choice

Suppose the money supply grew at an average annual rate of 8%,velocity was constant,the nominal interest rate averaged 9%,and output grew at an average annual rate of 3%.According to the quantity theory,

A) inflation averaged 8% per year and the real interest rate was 9%.
B) inflation averaged 11% per year and the real interest rate was 17%.
C) inflation averaged 5% per year and the real interest rate was 4%.
D) inflation averaged 1% per year and the real interest rate was 6%.