Inflation - Work It Out: Question 1 In the country of Orcam, the velocity of money is constant. Real GDP grows by 6 percent per year, the money stock grows by 15 percent per year, and the nominal interest rate is 11 percent. Calculate the growth rate of nominal GDP. a. Calculate the growth rate of nominal GDP. growth rate of nominal GDP: ____ %
b. Calculate the inflation rate. ____%
c. Calculate the real interest rate. real interest rate: _____%

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