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Question 4 (2 marks): The quantity theory of money with the money supply is 300 billion USD, the velocity is 30 and cons
Posted: Wed Jul 06, 2022 5:54 am
by answerhappygod
- Question 4 2 Marks The Quantity Theory Of Money With The Money Supply Is 300 Billion Usd The Velocity Is 30 And Cons 1 (66.12 KiB) Viewed 16 times
Question 4 (2 marks): The quantity theory of money with the money supply is 300 billion USD, the velocity is 30 and constant a. What is the nominal GDP of this economy? b. Suppose that money supply increases by 3% and the money neutrality holds, what is the percentage change in the nominal GDP and in the price level? According to the Fisher effect, what is the real interest rate if the nominal interest rate is 6%?