# Dynamic aggregate demand (AD) can be derived using the quantity theory of money. Label the equation so that it accuratelyexpresses the quantity theory of money in dynamic formgrowth in the money supply -+Answer Bankunemploymentgrowth in velocityinflationreal economic growthmarginal propensity to saveSuppose that the velocity of money is stable, 4% real economic growth is occurring, the rate of inflation is 4%, unemploymentis 5.3%, and the marginal propensity to save is 3%. By how much is the money supply growing? Enter your answer asa percentage.

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1761 views help_outlineImage TranscriptioncloseDynamic aggregate demand (AD) can be derived using the quantity theory of money. Label the equation so that it accurately expresses the quantity theory of money in dynamic form growth in the money supply -+ Answer Bank unemployment growth in velocity inflation real economic growth marginal propensity to save Suppose that the velocity of money is stable, 4% real economic growth is occurring, the rate of inflation is 4%, unemployment is 5.3%, and the marginal propensity to save is 3%. By how much is the money supply growing? Enter your answer as a percentage. fullscreen
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Step 1

The quantity theory of money:

The quanity thory of money equation can be written as follows:

Step 2

Growth in money supply:

Growth in money supply can...

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