Answer to Question #13971 in Macroeconomics for Mathias elago

Question #13971
suppose real GDP is growing at 4 percent, the money supply is growing at 11 percent, the velocity of money is constant, and the real interest rate is 6 percent.

a) what is the current inflation rate and nominal interest rate?
b)if the money supply growth rate increase to 15 percent, how will your answers in part(a) change?
1
Expert's answer
2012-09-04T09:45:48-0400
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