Calculate the velocity of money

Assignment Help Business Economics

Reference no: EM131378541

consider the following data. the money supply is $3 trillion, the price level equals 2, the real gdp is $6 trillion in base-year dollars. calculate the velocity of money.

Reference no: EM131378541

Questions Cloud

Excess reserves in the banking system prior to this deposit : Suppose that a lottery winner deposits $5 million in cash into her transactions account at the Bank of America. Assume a reserve requirement of 20 percent and no excess reserves in the banking system prior to this deposit. Show the changes on the Ban..

Employee religion without suffering undue hardship : The ADEA allows BFOQ to be used as a defense as long as substantially all of the individuals over the age at issue are unable to perform the duties of the job? Federal and private sector employees enjoy the same protections under ADEA? An employer ca..

Revenue product of labor exceeded the market wage rate : The additional output produced by a firm as a result of hiring another worker is called the marginal product of labor. The amount by which a firm’s revenue will increase as a result of hiring one more worker is called the marginal revenue product of ..

What are the fiscal policy instruments : What are the fiscal policy instruments? What are the fiscal policy types? Currently the economy is facing an inflationary gap and the government is extremelyconcerned with the rapidly raising prices.

Calculate the velocity of money : consider the following data. the money supply is $3 trillion, the price level equals 2, the real gdp is $6 trillion in base-year dollars. calculate the velocity of money.

Is this rule based policy pro-cyclical or countercyclical : Below draw an AD/AS graph and a money market graph side-by-side. For the money market, use an upward sloping money supply curve and assume that the equilibrium interest rate in the money market is 5%. Then explain and show what happens if the Fed act..

What problem is the economy facing : Assume that an economy is in the long-run equilibrium with the GDP deflator of 150 and potential output of $40 billion. The economy is experiencing a shock – a sharp drop of stock prices. What problem is the economy facing? The government decides to ..

Anticompetitive division of federal trade commission : Litigation is more likely to be effective than regulation at deterring a company's harmful (negligent) behavior if: The anticompetitive division of the Federal Trade Commission examines mergers to ensure that they do not create situations in which ab..

Suppliers produce more goods-services when price increases : Phillip’s Curve: For each of the following draw an AD/AS diagram and a corresponding Phillip’s curve assuming the following: suppliers produce more goods and services when price increases; Again assume actual GDP is at 9,200, in both diagrams show th..

User Account

All Pages