Business: Solve: suppose that initially the money supply is $1 trillion , the price level equals 3, the real gdp is $5 trillion in based-year dollars, and income velocity of money is 15. then the money supply increases by $100 billion, while real gdp and income velocity of money remain unchanged. how do i solve using the msv=py formula?

Solve: suppose that initially the money supply

Ответ:

Yeetious

18.01.2022

The new price level after the increase in the money supply is 3.3. Therefore, the percentage increase in the money supply is 10%. The percentage change in the price level is 10%. Percentage change in the money supply is the same as the percentage change in the price level.