If Velocity And Output Were Nearly Constant How Would The Inflation Rate Compare

1. If velocity and output were nearly constant, how would the inflation rate compare with the money supply growth rate?
2. A. The inflation rate would be much higher than the money supply growth rate.
3. B. The inflation rate would be about the same as the money supply growth rate.
4. C. The inflation rate would be much lower than the money supply growth rate.
5. D. The inflation rate cannot be compared with the money supply growth rate because they are independent of each other.

 

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