+1-415-670-9189
info@expertsmind.com
What is the velocity of money
Course:- Microeconomics
Reference No.:- EM13149092




Assignment Help
Assignment Help >> Microeconomics

Suppose that this year's money supply is $50 billion, nominal GDP is $1 trillion, and real GDP is $500 billion.

a. What is the price level? What is the velocity of money?

b. Suppose that velocity is constant and the economy's output of goods and services rises by 5 percent each year. What will happen to nominal GDP and the price level next year if the Fed keeps the money supply constant?

c. What money supply should the Fed set next year if it wants to keep the price level stable?

d. What money supply should the Fed set next year if it wants inflation of 10 percent?




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Microeconomics) Materials
Briefly explain the economic system for the command economy you named above. Show that you have used the CIA Factbook and other research sources without copying and pasting
Describe the difference between short run and long run as they are used in economics. Differentiate between Economics of scale and Diseconomies of scale.
If there is market for an indivisible item in which there is for each of the following numbers exactly one supplier whose cost of producing the item are equal to this number:
Presume a Treasury bill has a purchase price of $9850; a face value of $10,000 and 99 days to maturity. Compute the yield to maturity. Answer as a percent and round to two dec
Explain the law of demand and the law of supply in healthcare. Distinguish between demand and quantity demanded. What determinants cause a shift in demand? Please include refe
Discuss the implications of risk-return trade-off with respect to your overall investment portfolio as you approach retirement age. Are there any assets that you would avoid
You would love to own a copy of the very first printing of the first book, but unfortunately you can't find it for sale for less than $5,000. You are willing to pay at most
ntroduction of the Verson Stamping Machine helped firms in the automobile industry: shift their AVC, ATC, and MC curves upward. achieve greater economies of scale. reach the