Author Question: The quantity theory of money implies that a 3% increase in the money supply will eventually cause (Read 112 times)

rl · **on:** Apr 19, 2019

Question 1

If income is $30 billion, the price level is 3, and the stock of money is $18 billion, what is the velocity of money?

◦ 1.4
◦ 1.8
◦ 5
◦ 180

Question 2

The quantity theory of money implies that a 3% increase in the money supply will eventually cause

◦ a 3% increase in real GDP.
◦ a 3% increase in disposable income.
◦ a 3% increase in the price level.
◦ a 3% decrease in the unemployment rate.

Laurenleakan · **Reply #1 on:** Apr 19, 2019

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rl · **Reply #2 on:** Apr 19, 2019

Thanks

Laurenleakan · **Reply #3 on:** Apr 19, 2019

Welcome