Register
g If the velocity of money triples, while real GDP and money supply remain unchanged, in the long run, the price level:
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:

User James McCabe
by
4.6k points

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
5.0k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

5.2m questions

6.8m answers

Other Questions

Decker Tires' free cash flow was just FCF0 = $1.32. Analysts expect the company's free cash flow to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The WACC
Misk Co. purchased the following securities during 20X7 to be classified as held-to-maturity securities, trading securities, or available-for-sale securities: I. Debt securities bought and held for the
Risa has to work long hours and sometimes weekends, losing out on family time. Risa doesn't find her long hours overly stressful, but rather she sees it as her contribution to maintaining her family's
Donna's philosophy as she coordinates the marketing efforts is to keep in mind the company's overarching strategy, and to ensure that all marketing activities send a consistent message, beginning with
Brett buys a new cell phone for​ $100. he receives consumer surplus of​ $80 from the purchase. how much does brett value his cell​ phone?
Link Copied!