Write down the quantity equation in growth terms and identify each variable.
(a) According to the quantity theory of money, what determines the long-run rate of inflation?
(b) If real output growth is 3 percent and velocity is constant, what must the growth rate of
money be to ensure that inflation is 5 percent?

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The Answer of Write down the quantity equation in growth terms and identify each variable.
(a) According to the quantity theory of money, what determines the long-run rate of inflation?
(b) If real output growth is 3 percent and velocity is constant, what must the growth rate of
money be to ensure that inflation is 5 percent?

Write Down the Quantity Equation in Growth Terms and Identify