• Suppose that the income     velocity of money is constant, the money supply grows at 5% per year,     income is growing at 2% per year and the real interest rate is 4%
  

a)   Find thenominal interest rate.

b)   Find by howmuch the nominal interest rate varies when the Central Bank increases the moneygrowth rate by 2% a year.

c)   Suppose thatthe income growth falls to 1% a year. What will happen to the inflation rate? Whatshould the Central Bank do to keep inflation constant at 3%?

答案：

a)nominal interest rate = 7%(b)nominal interest rate varies by 2%(c) Inflation will rise.Central banks should reduce money supply by 1% to keep inflation constant
请大牛指点下答案怎么求出来的，能否给详细说明下,我可以追加分数。谢谢大牛们啦。。：）（我知道有个M*V=P*V公式，但这题目貌似不能用）