The long-run growth rate of real GDP for the United States is 3.2v%, and the expected real interest rate on corporate Aaa bonds has averaged 1.5 %. Assume the growth rate of velocity is 0%, and the rate of growth of the money supply is 7.7 %. In the long run, the nominal interest rate is ___ enter your response here%. (Round your response to one decimal place.) Part 2 If the rate of growth of the money supply falls to 5.5%, in the long run, the new nominal interest rate is ___ enter your response here%. (Round your response to one decimal place.) Part 3 I If the rate of growth of the money supply falls to 5.5% and, at the same time, the growth rate of real GDP falls to 1.4%, in the long run, the new nominal interest rate is ____ enter your response here %. (Round your response to one decimal place.)

The long-run growth rate of real GDP for the United States is 3.2v%, and the expected real interest rate on corporate Aaa bonds has averaged 1.5 %. Assume the growth rate of velocity is 0%, and the rate of growth of the money supply is 7.7 %. In the long run, the nominal interest rate is _ enter your response here%. (Round your response to one decimal place.) Part 2 If the rate of growth of the money supply falls to 5.5%, in the long run, the new nominal interest rate is _ enter your response here%. (Round your response to one decimal place.) Part 3 I If the rate of growth of the money supply falls to 5.5% and, at the same time, the growth rate of real GDP falls to 1.4%, in the long run, the new nominal interest rate is ____ enter your response here %. (Round your response to one decimal place.)

Macroeconomics: Principles and Policy (MindTap Course List)

13th Edition

ISBN:9781305280601

Author:William J. Baumol, Alan S. Blinder

Publisher:William J. Baumol, Alan S. Blinder

Chapter15: The Debate Over Monetary And Fiscal Policy

Section: Chapter Questions

Problem 2TY

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