Question

Using the following information what is the velocity of​ money? Component Value Money supply ​$1 comma 900 Price level 1.81 Real GDP ​$9 comma 000 The velocity of money is equal​ to: nothing ​(enter your answer rounded to two decimal places​).

Answer 1

8.57 (approx)

Step-by-step explanation:

Given:

Value Money supply = $1,900

Price level = 1.81

Real GDP = $9,000

Velocity of money = ?

Computation of Velocity of money:

Velocity of money = [Price level × Real GDP] / Value Money supply

Velocity of money = [1.81 × $9,000] / $1,900

Velocity of money = [$16,290] / $1,900

Velocity of money = 8.57368421

Velocity of money = 8.57 (approx)