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Find the velocity of money when  M = $622, P = 107, and YR=$33.

M is the money supply, v is the velocity of money, P is the price level, and YR is the real gross domestic product (GDP). Round your answer to 2 decimal places.

Find the velocity of money when M = $622, P-107, and $33. M is the money supply, v is the velocity of money, P is the price l

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The equation of exchange is:
MV=PY
M=money supply
V=velocity
P=price level
Y=real GDP
V=(PY)/M
V=(107*33)/622
=5.67684887
=5.68

the velocity is 5.68

 

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