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If the velocity (V) is constant, real GDP (y) grows at 3% per year, the money stock (M) grows at 8% per year, and the
If the velocity (V) is constant, real GDP (y) grows at 3% per year, the money stock (M) grows at 8% per year, and the nominal interest rate (i) is 9%. 1. What is the growth rate of nominal GDP? 2. What is the inflation rate (n)? 3. What is the real interest rate (r)
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