There are two questions I am struggling with. For question 21, I am unsure of how to mathematically show that the GDP deflator increased by 4% (answer A). I thought it should increase by 3% because I put the growth rates in the GDP deflator formula, I simply substituted 6% into nominal gdp and 2% for real gdp, and got a gdp deflator of 3. Why is this wrong? For question 21, I don't understand why E is the right answer because it seems to me like the money supply will decrease by half because the money multiplier was halved. Please explain both.

16 If the reserve requirement increases from 5 percent to 10 percent, and assuming the general public holds a portion of its money in cash, what will happen to the money multiplier and the money supply? Money Money Multiplier Supply (A) Increase Increase by double B) Increase Increase by less than double (C) Decrease Decrease by more than half (D) Decrease Decrease by half "E) Decrease Decrease by less than half21 If a nation's nominal gross domestic product (NGDP) increased by 6%, while its real rate of GDP growth (RGDP) was 2%, which of the following must be true? (A) The GDP deflator increased by 4% (B) The GDP deflator decreased by 4% (C) The inflation rate was 8% (D) The inflation rate was 3% (E) The GDP deflator increased by 3%