Suppose real gdp is growing 5 percent the money supply is, Business Economics

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Suppose real gdp is growing 5 percent the money supply is

Suppose real GDP is growing 5 percent, the money supply is growing at 5 percent, the velocity of money is growing at 5 percent, and the real interest rate is 2 percent. a. What is the current inflation rate and nominal interest rate? b. If the money supply growth rate increases to 10 percent, how will your answers in part (a) change?

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