EBK ECONOMICS
EBK ECONOMICS
13th Edition
ISBN: 8220106799642
Author: PARKIN
Publisher: PEARSON
Question
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Chapter 29, Problem 6SPA

(a)

To determine

Identify the growth rate of the quantity of money.

(b)

To determine

Identify the growth rate of the quantity of money.

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Japan's money supply is growing rapidly at a 5.54% while real GDP is increasing at 8.29%.  Japan's real interest rate is also growing at 4.46%.  *we are assuming Quantity Theory of Money, Classical Dihotomy, and Fisher Effect effect are true. a. calculate the inflation rate  b. calculate nominal interest rate  c. calculate GDP growth rate
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