Government Policy and Trade: MV=PQ If money supply grows 25%, velocity declines 5%, and quantity rises 2%, how much does price rise? Note: this explains our current inflation situation as the economy opened as money supply soared about 25%. To help yourself, what you need to solve for is P. - (1+% change in M)(1+% change in V)=(1+% change in P)(1+% change in Q) - (1+% change in P)=(1+% change in M)(1+% change in V)/(1+% change in Q) - W change in P=(1+% change in M)(1+% change in V)/(1+% change in Q)=1 Important Enter your answer in a whole number with one decimal and without the %. For instance, If your answer is 5.54%, please write 5,5