According to the quantity theory of money,if the money supply grows at 6%,real GDP grows at 2%,and the velocity of money is constant,then the inflation rate will be

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The quantity theory of money is represented by the equation MV = PQ, where M is the money supply, V is the velocity of money (assumed constant in this scenario), P is the price level, and Q is the real GDP. If the money supply grows by 6% and real GDP grows by 2%, with the velocity of money constant, the difference (6% - 2%) results in a 4% inflation rate.

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