If the growth rate of the money supply were 4% and the growth rate of the velocity of money were 2%, then which of the following could be a point on the aggregate demand curve?
A. Inflation of 3% and real growth of 3%
B. Inflation of 6% and real growth of 6%
C. Inflation of 4% and real growth of 4%
D. Inflation of 2% and real growth of 2%
Answer: A. Inflation of 3% and real growth of 3%
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