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What is the current inflation rate and nominal interest rate

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Reference no: EM131486886

Suppose real GDP is growing 5 percent, the money supply is growing at 10 percent, the velocity of money is growing at 1 percent, and the real interest rate is 2 percent.

a. What is the current inflation rate and nominal interest rate?

b. If the money supply growth rate increases to 12 percent, how will your answers in part (a) change?

Reference no: EM131486886

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