ijohnh14
02.12.2020 •
Social Studies
The price level equals 4, the real GDP is $6 trillion in base-year dollars, and income velocity of money is 12. Then the money supply increases by $200 billion, while real GDP and income velocity of money remain unchanged. According to the quantity theory of money and prices, calculate the new price level after the increase in money supply Calculate the percentage increase in money supply Calculate the percentage change in the price level The percentage changes in the money supply is percentage changes in the price level. (pick one from below) less than the greater than the equal to the
Solved
Show answers
More tips
- F Food and Cooking How to Set Up Ventrilo - The Ultimate Guide...
- L Leisure and Entertainment How to Make a Crab Trap in Just a Few Minutes...
- H Health and Medicine How Much Does Abortion Cost? Expert Answers and Insights...
- S Sport How to Build Arm Muscles? Effective Exercises and Tips...
- H Health and Medicine When can it be said that a person has a normal pulse?...
- A Art and Culture When Will Eurovision 2011 Take Place?...
- S Style and Beauty How to Choose the Perfect Hair Straightener?...
- F Family and Home Why Having Pets at Home is Good for Your Health...
- H Health and Medicine How to perform artificial respiration?...
- H Health and Medicine 10 Tips for Avoiding Vitamin Deficiency...
Answers on questions: Social Studies
- S Social Studies How does stagflation differ from the traditional business cycle?...
- S Social Studies What role does Dharma and Kharma plays in a Hindu’s life...
- S Social Studies Socialization, as a sociological term, describes?...
- S Social Studies Theology is the study of religious ......
- S Social Studies The probability distribution is used to describe data where lower values tend to dominate and higher values don t occur very often. a.binomial b...
- H Health 3. according to maslow, humans must have their emotional needs met before they can be concerned with any other needs. true false...
- B Business Shot putting and swimming are examples of what kind of competitive activity?...
- M Mathematics On a map of a city, the scale is 1 centimeter to 500 meters. if it is 4 kilometers between city hall and the library, how many centimeters is it on the map? a) 8 cm b)...
- A Arts Why is continuity important in films? what can filmmakers do to ensure continuity in their films?...
- H Health Anewborn of 34 weeks gestation is not breathing ( apneic) at birth, does not respond to initial steps and requires positive-pressuer ventilation. what concentration of...
Ответ:
The correct answer is "The percentage changes in the money supply is equal to the percentage changes in the price level" according to the equation of exchange
Explanation:
The Equation of Exchange deals with the relationship between money and price level, and also between money and real GDP.
The equation simply states: M x V = P x Y
Where M = the money supply
V = the velocity of money
P = the price level
Y = real GDP
Velocity is the number of times the average dollar is spent to buy final goods and services in a given year.
Velocity can be calculated by using V = (P x Y ) / M
The equation tells us that total spending (M x V) is equal to total sales revenue (P x Y).
Since (P x Y) is equal to the real GDP, then M x V = real GDP
Velocity (V) and Real GDP (Y) are effectively constant in the short run, therefore any changes in money supply (M), will cause a proportional change in the price level (P).
This equation demonstrated a direct relationship between price and money supply. If V and Y are constant, a certain percentage change in money supply will cause an equal amount of change in the price level.
Ответ:
Solve them
Explanation:
Better to solve your problems than to runaway from them because they will always come back and it will still bother you...If you are in a pickle, ask a trusted adult or a trust friend to tell them your problems. In my opinion I think you might feel better talking to someone about your problems.