Suppose Output Is Growing at 4% and the Nominal Money

Multiple Choice

Suppose output is growing at 4% and the nominal money stock is growing at 0%.Also assume that the economy has reached its medium run equilibrium.Given this information,we know with certainty that

A) inflation is less than 4%.
B) inflation is greater than 4%.
C) inflation is equal to 4%.
D) the real interest rate is equal to the nominal interest rate.
E) deflation occurs.