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Suppose that the central bank wants to stimulate the economy by increasing the money supply. The bankers estimate that the velocity of money is 4.8
Suppose that the central bank wants to stimulate the economy by increasing the money supply. The bankers estimate that the velocity of money is 4.8 and that the price level will increase from 120 to 132 due to the stimulus. Using the quantity equation of money, what will be the increment of a $830 billion dollar increase in the money supply on the quantity of goods (In Billionsland services in the economy given an initial money supply of $4.7 trillion? (Please round your answer to include 2 decimal places. Enter the ammoun in Billions, that is, If the total quantity decreases by 1 billion, enter your answer as -1.)
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