231k views
4 votes
If the money supply is $6 trillion, the price level of 120, and the real output is $300 billion, what is the velocity of money

User Anuragh KP
by
7.6k points

1 Answer

4 votes

Answer:

6

Explanation:

Using the formula for velocity of money:

Velocity of money = (Price level x Real output) / Money supply

Plugging in the given values, we get:

Velocity of money = (120 x 300 billion) / 6 trillion

Velocity of money = 6

Therefore, the velocity of money is 6.

User Rik
by
7.5k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories