Assume that in 2010, the long-run growth rate of the real GDP of Colombia was 1.7%, that the velocity of money was constant (i.e.the growth rate of velocity = 0%), and that the inflation rate was initially at 1.0%. In addition, assume that the nominal interest rate in the economy was at 7.3%.

(a)Given the scenario above, what must have been the growth rate of the money supply in Colombia in order to be consistent with the quantity theory?

(b)Given the scenario above, what was the real interest rate in Colombia in 2010?