The velocity of circulation is constant, real GDP is growing at 2 percent a year, the real interest rate is 2 percent a year, and the nominal interest rate is 6 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 constant, real GDP is growing at 2 percent a year, the real interest rate is 2 percent a year, and the nominal interest rate is 6 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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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