If velocity=4, the quantity of money= 20,000, and the price level =2.5 then the real value...
If velocity=4, the quantity of money= 20,000, and the price level =2.5 then the real value of output is....?
A) 2,000
B)200,000
C)12,500
D)32,000
Homework Answers
As per quantity theory
M*V=P*Q
20000*4=2.5*Q
Q=80000/2.5
Q=32000 is real value of output
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