Suppose that nominal GDP is $5,000 and the velocity of money is equal to 5. According to the quantity theory of money, what is the amount of money in circulation? O $100 O $500 O $1,000 O $5,000 O None of the aboveOver the last thirty years O Real household income has stagnated O Real wages per hour have stagnated Real wages including benefits have stagnated Income for poor households has increased at a slower rate than income for rich households None of the aboveSuppose the Federal Reserve is targeting the price level. Its target inflation rate is 2%. Suppose you see the Federal reserve increases the money supply by 5 percent. Using the model developed in class, you can be sure that. O The budget deficit is 5% of GDP. O The Fed expects velocity to fall by 5% O The Fed expects income growth of 3% O The Fed expects the exchange rate to depreciate by 5% O None of the above.Suppose that the money supply will grow by 2% in Japan over the next five years. Velocity is constant. Real income is expected to grow at 3%. The inflation rate will be: 5% O 3% O 1% O -1% O none of the aboveModern Monetary Theory says that the government budget deficit O should be zero O Is not important O depends on inflation O we should have a budget surplus O none of the aboveThe primary budget is balanced. The interest rate is 5 percent. The growth rate of GDP is 2 percent. The initial debt-GDP ratio is 10 percent. Over time, the debt to GDP ratio will grow by O 2 percent. percent 5 percent. 10 percent We do not have enough information