Q10. Consider an economy where production grows exogenously at the rate of 1%. There is no capital stock and no investment so consumption equals production in each period. The subjective discount rate is 3%, the utility function is u(C.) = In(C+), and inflation is 5%. (a) What is the real interest rate in this economy? (Hint: Use the first order condition for consumption.) (b) What is the nominal interest rate in this economy