M = $6,000 billion
V = 2.5
P = 100
(a) What is the real value of output (Q)?
Now assume that the Fed increases the money supply by 10% and velocity remains unchanged.
(b) If the price level remains constant, by how much will real output increase?
(c) If, instead, real output is fixed at the natural level of unemployment, by how much will prices rise?
(d) By how much would V have to fall to offset the increase in M?
Recently Asked Questions
- A contestant in a winter games event pulls a 51.0 kg block of ice across a frozen lake with a rope over his shoulder at an angle of 25 degrees. The
- Can you please help in providing specific statistical information on the operating revenues, operating expenses and change in net position for the last three
- A recent poll of Smallville voters showed that 55% of them support the mayor. What is the probability that in a random sample of 20 Smallville voters, exactly