Velocity of money is constant

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Suppose that this year's money supply is $1/2 trillion, nominal GDP is $15 trillion, and real GDP is $10 trillion. a. What is the price level? b. What is the velocity of money? c. If the velocity of money is constant, but output of goods and services rises by 5%, what money supply should the FED set next year if it wants to keep the price level stable?

Reference no: EM131073908

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