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3. Lets consider a hypothetical economy where this years money supply is Tk.400, nominal GDP is Tk. 80000 and real GDP is Tk. 5000. a)
3. Lets consider a hypothetical economy where this years money supply is Tk.400, nominal GDP is
Tk. 80000 and real GDP is Tk. 5000.
a) What does the quantity theory of money say?
b) Calculate the price level.
c) Calculate the velocity of money.
d) Suppose the central bank changes the money supply so that the new money supply is Tk. 500, calculate the new price level.
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Introduction To Financial Accounting
Authors: Anne Marie Ward, Andrew Thomas
7th edition
77138449, 978-0077132682, 77132688, 978-0077138448
