What is the real interest rate in this economy

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In 2004, the economy was at full employment, with a real GDP of $886 billion, a 6% nominal interest rate per annum, a 2% annual inflation rate, a 1.1 price level, and 10 velocity of circulation.

What is the real interest rate in this economy?

How does nominal interest rate change if the inflation rate goes up to 4% while real interest rate does not change?

Reference no: EM131393622

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