According to the quantity theory of money,if the money supply grows at 25% and the inflation rate is 20%,the growth in real GDP is

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According to the quantity theory of money, the equation is MV = PY, where M is the money supply, V is velocity, P is the price level, and Y is real GDP. If the money supply grows by 25% and the inflation rate is 20%, then the growth in nominal GDP (PY) would be 45% (25% + 20%). Assuming velocity and the level of output remain constant, the growth in real GDP (Y) would be equal to the growth in nominal GDP (45%) minus the inflation rate (20%), which equals 25%. Therefore, the growth in real GDP is 5% (25% x 0.2 = 5%).

According to the Quantity Theory of Money,if the Money Supply