If the asset market is in equilibrium,the growth rate of the nominal money supply minus the growth rate of real money demand equals

Question

Quizplus · Accepted Answer

According to the quantity theory of money, the growth rate of nominal money supply minus the growth rate of real money demand is equal to the inflation rate. In equilibrium, the inflation rate must be zero, which implies that the growth rate of nominal money supply must be equal to the growth rate of real money demand.

If the Asset Market Is in Equilibrium,the Growth Rate of the Nominal