Multiple Choice
If velocity is growing by 2 percent per year and real output is growing 6 percent per year, according to the equation of exchange, in order to maintain stable prices, the money supply would have to:
A) grow by 3 percent.
B) grow by 4 percent.
C) grow by 8 percent.
D) grow by 12 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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