In Hungary, the velocity of money is constant. Real GDP grows at 3% per year, the money supply grows at 7% per year and the real interest rate in Hungary is 2%. (a) What is the inflation rate in Hungary? (b) What is the nominal interest rate in Hungary? (c) Suppose that Hungary wants to bring inflation to 1% per year. What should it do to the growth rate of the money supply? (d) What is one benefit of a moderate rate of inflation? (Hint: Focus on the real wage rate)