In the country of Dagobah, the velocity of money is constant. Real GDP grows by 3 percent per year, the money stock grows by 8 percent per year, and the nominal interest rate is 9 percent. What is:

a. The growth rate of nominal GDP?

b. The inflation rate?

c. The real interest rate?

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akrashahmad1314Lv5

11 Jul 2023

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