According to the quantity theory of money, what must the growth rate of the money supply be given the following information? The growth rate of real GDP is 1.0%. The growth rate of nominal GDP is...

According to the quantity theory of money, what must the growth rate of the money supply be given the following information?

The growth rate of real GDP is 1.0%.

The growth rate of nominal GDP is 3.8%.

The nominal interest rate is 7.1%.

The real interest rate is 4.3%.

The money supply (M2) is $10,612(in billions)

According to the quantity theory of money, the growth rate of the money supply must be___%. (Round your answer to the nearest tenth.)

Jun 08, 2022

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