Suppose that the central bank wants to discourage the economy by decreasing the money supply. The bankers estimate that

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Suppose That The Central Bank Wants To Discourage The Economy By Decreasing The Money Supply The Bankers Estimate That 1 (20.53 KiB) Viewed 29 times

Suppose that the central bank wants to discourage the economy by decreasing the money supply. The bankers estimate that the velocity of money is 5, and that the price level will decrease from 112 to 110 due to the contractionary monetary policy. Using the quantity equation of money, what will be the impact on Real GDP of an $100 billion dollar decrease in the money supply on the quantity of goods and services in the economy given an initial money supply of $4 trillion? (ANSWER IN BILLION and 2 decimals) Typed numeric answer will be automatically saved.