Using the quantity theory of money, suppose V is constant, money M grows at 12%, real...
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Using the quantity theory of money, suppose V is constant, money M grows at 12%, real income Y grows at 4%, and the nominal interest rate is 11%.
a) What is the real interest rate?
b) Now suppose that real income grows at 6% and money supply growth remains at 12%,what is the real interest rate?
c) What must be the new money growth rate to maintain the real interest rate at the level
from part (a)?
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Using the quantity theory of money, suppose V is constant, money
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i dont know how to do #12 or #13 Section 3: Quantity Theory of Money (3...
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