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sertanlavr [38]
2 years ago
5

If the stock of money is $250 billion, velocity is 5, and the price level is 10, what is real output

Business
1 answer:
Lostsunrise [7]2 years ago
7 0

The real output given the money supply, price level and the velocity of money is $125 billion.

<h3>What is the quantity theory of money?</h3>

The quantity theory of money states that the price of goods and services in an economy is directly proportional to the money supply.

Quantity theory of money: price x real output = money supply x velocity

<h3>What is the real output?</h3>

Real output = (money supply x velocity) / price

(250 billion x 5) / 10 =

$125 billion

To learn more about the quantity theory of money, please check: brainly.com/question/26370040

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Download xlsx
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