Question

Given- income 100000 ,nominal money supply 80000, price level 20.calculate the money growth rate required to finance the budget efficient of rupees 10000 in an economy?​

Answer 1

Answer:

AM/M + AV/V = AP/P + AGDP/GDP. AM/M is the growth rate of the money supply, ~W/V is the growth rate of velocity, AP/P is the growth rate of the GDP deflator (inflation rate), and AGDP/GDP is the growth rate of real gross domestic product. If velocity is constant, its growth rate is zero.

use that formula you will get your answer