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Suppose that bankers estimate that the velocity of money is 2, and that the quantity of goods and services (Q) will rise from 100 to
Suppose that bankers estimate that the velocity of money is 2, and that the quantity of goods and services (Q) will rise from 100 to 150 due to a monetary stimulus. Using the quantity equation of money, what will be the impact of a $4, 000 dollar increase in the money supply on the price level (P) given an initial money supply of $5, 000? Select the correct answer below: 20 42.7 28 150
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