Why the supply of money needs to be increased

Reference no: EM13221227

If nominal GDP is $4,000 billion and the amount of money demanded for transactions purposes is $800 billion, it can generally be concluded that: The asset demand for money will be $3,200 billion The total demand for money will be $4,800 billion On average, each dollar will be spent five times a year The supply of money needs to be increased to meet the demand.

Reference no: EM13221227

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