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tia_tia [17]
3 years ago
12

If M = 6,000, P = 2, and Y = 12,000, what is velocity?

Business
1 answer:
NARA [144]3 years ago
5 0

Answer:

Velocity of money = 4

Explanation:

Given:

Money supply M = 6,000

Price level P = 2

Real GDP Y = 12,000

Find:

Velocity of money

Computation:

Velocity of money = [Price level x Real GDP] / Money supply

Velocity of money = [P x Y] / M

Velocity of money = [12,000 x 2] / 6,000

Velocity of money = [24,000] / 6,000

Velocity of money = 24 / 6

Velocity of money = 4

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