Make use of the quantity equation to answer the following problem. If the Fed increases the money supply by 6%, economic growth is 2%, and inflation is 2%, what is happening to the velocity of money? Be specific
What will be an ideal response?
Since the percent change in the money supply plus the percent change in velocity equals the percent change in real GDP plus the percent change in the price level, velocity is declining by 2%.
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In the long run, if the output of a firm is zero then its total cost will be equal to its total fixed cost
a. True b. False Indicate whether the statement is true or false
It is often easier to see the ___________ of globalization than it is to see the _____________. This is because the costs tend to be more ________________, while the benefits tend to be __________________
A) costs; benefits; concentrated; widely dispersed. B) benefits; costs; concentrated; widely dispersed. C) costs; benefits; widely dispersed; concentrated. D) benefits; costs; widely dispersed; concentrated.