1. OLaunchPod • In the country of Wiknam, the velocity of money is constant. Real GDP grows by 3 percent per year, the money stock grows by 8 percent per year, and the nominal interest rate is 9 percent. What is a. the growth rate of nominal GDP? b. the inflation rate? c. the real interest rate?
1. OLaunchPod • In the country of Wiknam, the velocity of money is constant. Real GDP grows by 3 percent per year, the money stock grows by 8 percent per year, and the nominal interest rate is 9 percent. What is a. the growth rate of nominal GDP? b. the inflation rate? c. the real interest rate?
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![1. O LounchPod • In the country of Wiknam, the
velocity of money is constant. Real GDP grows
by 3 percent per year, the money stock grows by
8 percent per year, and the nominal interest rate
is 9 percent. What is
a. the growth rate of nominal GDP?
b. the inflation rate?
c. the real interest rate?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7195ce50-3c57-405f-9e40-4fd0b06eda98%2Fe849c17d-57f9-472e-9c14-038c844a2e4a%2F569by3i_processed.png&w=3840&q=75)
Transcribed Image Text:1. O LounchPod • In the country of Wiknam, the
velocity of money is constant. Real GDP grows
by 3 percent per year, the money stock grows by
8 percent per year, and the nominal interest rate
is 9 percent. What is
a. the growth rate of nominal GDP?
b. the inflation rate?
c. the real interest rate?
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