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What is the real rate of return

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Reference no: EM131355084

Suppose the money supply grew at an average annual rate of 3%, velocity decreased by 5%, the nominal interest rate averaged 9%, and output grew at an average annual rate of 5%. According to the Quantity Theory, what is the real rate of return?

  • 4%
  • 5%
  • 9%
  • 13%

Reference no: EM131355084

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