117k views
2 votes
g If the velocity of money triples, while real GDP and money supply remain unchanged, in the long run, the price level:

1 Answer

6 votes

Answer:

if velocity triples, then in the long run, price would triple

Step-by-step explanation:

According to the quantity theory of money

velocity x money supply = output x price

if velocity triples, then in the long run, price would triple

User GlassZee
by
9.1k points

No related questions found

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