Gdp is growing also both the velocity of money

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Q. Consider the equation of exchange:

Mv = PY

Assume that the velocity of money is constant. Under a gold standard, continual increases in the supply of money are implausible for a world economy that is growing over time. Utilize the equation of exchange above to indicate Illustrate what the effects would be if real GDP is growing also both the velocity of money also the money stock are constant. Please converse.

 

Reference no: EM1320826

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