False.
Explanation: Following is the relationship among money growth (?M), change in the velocity of money (?V), change in prices (?P), and a change in real GDP (?Y):
?M + ?V = ?P + ?Y
So, if velocity is constant i.e. ?V = 0 and we want to achieve zero inflation i.e. ?P = 0, in that case, putting the values, we get:
?M + 0 = 0 + ?Y
or, ?M = ?Y
Therefore, in order to achieve zero inflation, the rate of money growth should be equal to the change in the real GDP.
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