. On the planet of Unjustice, the velocity of money is constant. The growth rate of real GDP is by 6% per year, the money supply grows by 20% per year, and the nominal interest rate is 24%. What is the real interest rate in the planet of Unjustice? 3.

. On the planet of Unjustice, the velocity of money is constant. The growth rate of real GDP is by 6% per year, the money supply grows by 20% per year, and the nominal interest rate is 24%. What is the real interest rate in the planet of Unjustice? 3.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3.. 1On the planet of Unjustice, the velocity of money is constant. The growth rate of real GDP is by 6% per
year, the money supply grows by 20% per year, and the nominal interest rate is 24%. What is the real interest
rate in the planet of Unjustice?

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