The nominal interest rate is currently 4.6% per year and the current expected inflation is 2.7%. suppose the fed unexpectedly increases the growth rate of the money supply, causing the inflation rate to rise unexpectedly from 2.7% to 3.2% per year. as a result of this change in inflation, the nominal interest rate will now be %. assume that the classical dichotomy holds.

Suppose the government enacts a stimulus program composed of $600 billion of new government spending and $300 billion of tax cuts for an economy currently producing a gdp of $14 comma 000 billion. if all of the new spending occurs in the current year and the government expenditure multiplier is 1.5, the expenditure portion of the stimulus package will add nothing percentage points of extra growth to the economy. (round your response to two decimal places.)