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Use the following information for questions #13,l4,15, and 16. The money growth rate is currently 3%, the real GDP grth rate is 5%, and real
Use the following information for questions #13,l4,15, and 16. The money growth rate is currently 3%, the real GDP grth rate is 5%, and real interest rates are currently 0%. The economy is in the long-run. 13) a) b) C) d) 14) a) b) C) d) l 5) a) b) c) d) 16) What is nominal GDP growth? -2% 2% 3% 5% What is the nominal interest rate? -2% 2% 3% 5% Ifthe Central Bank increase the money growth rate by 3 percentage points then ination will increase by 3 percentage points decrease by 3 percentage points not change at all decrease by less than 3 percentage points. Ifthe Central Bank increase the money growth rate by 3 percentage points then nominal GDP growth will increase by 3 percentage points decrease by 3 percentage points not change at all decrease by less than 3 percentage points
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