Velocity in the Country of Nanoland Is Always Stable

Multiple Choice

Velocity in the country of Nanoland is always stable. In 2018, the money supply was $200 billion and the GDP price deflator was four times as high as it was in the base year. In 2019, the money supply increased to $240 billion, the price level increased by 15 percent, and nominal GDP equalled $1200 billion. By how much did real GDP increase between 2018 and 2019?

A) 0.45 percent
B) 4.35 percent
C) 7.45 percent
D) 20 percent