# Growth rate of money

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Is it possible to obtain the inflation rate, growth rate of money,and growth rate of nominal GDP with only the following information?

Constant velocity of circulation

real GDP growing at 3%

real interest rate growing at 2%

nominal interest rate at 7%.

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##### Solution Summary

The solution calculates inflation rate, growth rate of money,and growth rate of nominal GDP, given Constant velocity of circulation, real GDP, real interest rate, nominal interest rate.

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Yes it is possible to obtain the inflation rate, growth rate of money,and growth rate of nominal GDP.

inflation rate

real interest rate = 2%

Nominal interest rate = 7%

(1+ nominal interest rate)= (1+ real interest rate) * ( 1+ inflation rate)

or (1+ 7%)= (1+ 2%) * ( 1+ ...

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