The velocity of circulation is growing at 5 percent a year, the real interest rate is 5 percent a year, the nominal interest rate is 10 percent a year, and the growth rate of real GDP is 3 percent a year. Calculate the inflation rate, the growth rate of money, and the growth rate of nominal GDP. The inflation rate is percent a year.
The velocity of circulation is growing at 5 percent a year, the real interest rate is 5 percent a year, the nominal interest rate is 10 percent a year, and the growth rate of real GDP is 3 percent a year. Calculate the inflation rate, the growth rate of money, and the growth rate of nominal GDP. The inflation rate is percent a year.
Chapter14: Money And The Economy
Section: Chapter Questions
Problem 5WNG
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