Velocity and output are constant and that quantity theory

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Suppose that velocity and output are constant and that the quantity theory and Fischer effect are both correct. If the nominal interest rate is 8 percent and inflation is 3 percent, what is the money supply growth rate or the real interest rate? a)the money supply growth rate is 3% b)the real interest rate is 11% c)the real interest rate is 8% d) the money supply growth rate is 11%

Reference no: EM131079666

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