Economics Homework Solutions
Problem
#252719

Real Interest Rate

I need help in Managerial Economics
I am using Economics for managers BOOK: ECO 550 STRAYER UNIVERSITY 2008 CUSTOM EDITION; ECONOMICS for MANAGERS: ISBN- 13: 978-0-558-03749-9.  Please should step by step detaileds in solving the problem.

Real Interest Rate
Given 2005 data where nominal money supply (M1) $1,374.5 Billion, nominal interest rates is 6.89%, the consumer price index is 195 (1982-84 prices), and inflation rates is 3.4%, compute the current real stock of money in the US and real interest rates. Please provide an interpretation of the answer as well.

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