Macroeconomics Need help on Problem!! (10 pts!?)?

Question

Here is the question: If the money supply is growing at a rate of 6 percent per year, real GDP is growing at a rate of 3 percent per year, and velocity is constant, what will the inflation rate be? If velocity is increasing 1 percent per year instead of remaining constant, what will the inflation rate be?

Thanks for your help, I always give best answer!

Answer 1

M/P=Q/V

PQ=MV

P=MV/Q

ΔP=1.06 * 1.00 / 1.03 = 1.0291 = +2.91%

ΔP=1.06 * 1.01 / 1.03 = 1.0394 = +3.94%