What is the equation of exchange

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What is the equation of exchange? Use the equation of exchange to determine by how much the price level increases if the economy is at full employment, velocity is constant, and the money supply increases by 7.6%. Based on our class discussion, does an increase in money supply always directly lead to and increase GDP when the economy is not at full employment? Explain.

Reference no: EM131043258

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What is the equation of exchange : What is the equation of exchange? Use the equation of exchange to determine by how much the price level increases if the economy is at full employment, velocity is constant, and the money supply increases by 7.6%.
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