The stock of M1 money in the US as of Feb 01, 2021 is worth $ 6.8 trillion. Velocity of money is expected to be 3.5. If the money stock, and velocity remain constant for 2021 at the given value, what is the expected nominal GDP of the US in 2021?

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Answer 1

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Answer #1

MV = PY

PY = nominal level of GDP

M = Money stock

V = velocity of money

So, 6.8×3.5 = $23.8 trillion

answered by: Etilish

Answer 2

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