Qssume that an economy characterized by m 6000 billionv

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Q. Assume that an economy characterized by
M = $6,000 billion
V = 2.5
P = 100

(a) Illustrate what is the real value of output (Q)?
Now assume that the Fed increases the money provides by 10% and velocity remains unchanged.

(b) If the price level remains constant by Explain how more will real output increase?

(d) By explaining how more would V have to fall to offset the increase in M?

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