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Assume monetary equilibrium exists; that is, the desired and actual supply of money are equal. Also assume that nominal GDP equals $960 billion and the money supply is $160 billion. From a strict monetarist
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Assume monetary equilibrium exists; that is, the desired and actual supply of money are equal. Also assume that nominal GDP equals $960 billion and the money supply is $160 billion. From a strict monetarist view, an increase in the money supply by $12 billion will increase nominal GDP by:

A. $24 billion
B. $72 billion
C. $80 billion
D. $13 billion

User Flaschenpost
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Answer:B $72

Explanation: norminal GDP x increase in money supply/money supply

User Drenda
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