Say the money supply is $70 million, real GDP is $11 million and the price level...

Question

Question

Say the money supply is $70 million, real GDP is $11 million and the price level is 14. Then you can say that velocity is

1.5

None of the above/below

2.5

2

3

Answer 1

Answer #1

Ans.- None of the above/Below

According to the quantity theory of money,

MV = PY

70* V = 14*11

V = 2.2

Answer 2

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