Suppose real gdp is growing at 3 the money supply is


Suppose real GDP is growing at 3%, the money supply is growing at 10%, the velocity of monet is constant, and the real interest rate is 5%.

a)How would the change in money supply growth (an increase by 15%) affect an investor's real profitability, assuming that they now receive the new nominal interest rate?

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Business Economics: Suppose real gdp is growing at 3 the money supply is
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