Suppose there is an economy with a constant returns to scale Cobb-Douglas production function. Ifthe population increases then the marginal product of capital increases decreases does not change cannot be determined Ifthe money growth rate is 2% and the real GDP growth rate and real interest rate are 0%, what must be the nominal interest rate? -2% 0% 1% 2% Suppose Central Bank increase the money growth rate in an economy by 2 percentage points. In the long-run we know that the nominal interest rate will not change increase by 2 percentage points decrease by 2 percentage points decrease by more than 2 percentage points Suppose in a Solow model we increase the population grth rate. All else the same we know the steady-state level of output per worker will increase decrease not change be unknowable