In the country of Wiknam, the velocity of money is constant. Real GDP grows by 3 percent
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Question:
In the country of Wiknam, 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?
Related Book For
Macroeconomics
ISBN: 978-1464168505
5th Canadian Edition
Authors: N. Gregory Mankiw, William M. Scarth
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