If the quantity of money grows at 4 percent a year, velocity grows at 2 percent, and real GDP grows at 2 percent a year, then the inflation rate equals
A) 6 percent.
B) 2 percent.
C) 0 percent.
D) 8 percent.
E) 4 percent.

Question

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The Answer of If the quantity of money grows at 4 percent a year, velocity grows at 2 percent, and real GDP grows at 2 percent a year, then the inflation rate equals
A) 6 percent.
B) 2 percent.
C) 0 percent.
D) 8 percent.
E) 4 percent.

If the Quantity of Money Grows at 4 Percent a Year