In the long run, the real interest rate is 3 percent, real GDP ...

[krzymel]

In the long run, the real interest rate is 3 percent, real GDP grows at 4 percent, velocity is constant, and the quantity of money grows at 6 percent. The nominal interest rate is
 
  A) 3 percent. B) 10 percent. C) 5 percent. D) 6 percent. E) 4 percent.

Question 2

In an economy with no income taxes or imports, if the multiplier is 5, what does the MPC equal?
 
  A) 0.9 B) 0.2 C) 0.4 D) 0.8 E) 0.5

[makaylafy]

Answer to Question 1

C

Answer to Question 2

D

[krzymel]

Gracias!

[bigcheese9]

Excellent