Question
Suppose that initially the money supply is $3 trillion, the income velocity of money is 5, the price level equals 3, and real GDP is
Suppose that initially the money supply is $3 trillion, the income velocity of money is 5, the price level equals 3, and real GDP is $5 trillion in base-year dollars. Then suppose that the quantity of money in circulation remain fixed but the income velocity of money doubles.
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Macroeconomics Principles Applications and Tools
Authors: Arthur O'Sullivan, Steven Sheffrin, Stephen Perez
9th edition
978-0134089027, 134089022, 978-0134420684
