What must have happened to the value of velocity during 2012

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Reference no: EM131305563

1. Briefly discuss the pros and cons of a central bank being independent of the rest of the government.

2. If during 2012 the money supply increases by 4%, the inflation rate is 2%, and the growth of real GDP is 3%, what must have happened to the value of velocity during 2012?

3. A student makes the following statement: "If the money supply in a country increases, then the level of total production in that country must also increase." Briefly explain whether you agree with this statement.

Reference no: EM131305563

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