ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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The growth rate of real
The growth rate of nominal GDP is 7.8%
The nominal interest rate is 4.2%
The real interest rate is 2.8%
The money supply (M2) is $11,438(in billions)
Use the information given above to calculate the inflation rate.
- According to the quantity theory of money, if in a year's time, real GDP grew from $10 trillion to $10.2 trillion, and nominal GDP for the same time period grew from $10 trillion to $10.5 trillion, what is the growth rate of money supply? And the inflation rate?
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