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Now assume the fed increase the money supply by

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Reference no: EM13327003

Suppose the economy is characterized by:

 

M= $6,000 Billion

V= 2.5

P= 100

(a) What is the real value of Q? Answer: 150 billion

Now assume the Fed increase the money supply by 10% and volcity remains unchanged?

Reference no: EM13327003

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