Velocity in the Country of Aquilonia Is Always Stable

Multiple Choice

Velocity in the country of Aquilonia is always stable.In 2014,the money supply was $100 billion,nominal GDP was $500 billion,and the real interest rate was 3 percent.In 2015,the money supply was $105 billion,and real GDP did not change from its level in 2014.What was the approximate nominal interest rate in 2015?

A) 3 percent
B) 5 percent
C) 8 percent
D) 11 percent