Suppose that this year's money supply is $$600$ billion, nominal GDP is $$15$ trillion, and real GDP is $$3$ trillion.

The price level is $,$ and the velocity of money is $.$

Suppose that velocity is constant and the economy's output of goods and services rises by $5$ percent each year. Use this information to answer the questions that follow.

If the Fed keeps the money supply constant, the price level will $,$ and nominal GDP will $$

True or False: If the Fed wants to keep the price level stable instead, it should decrease the money supply by $5\%$ next year.

True

False

If the Fed wants an inflation rate of $10$ percent instead, it should $$ the money supply by $.($Hint: The quantity equation can be rewritten as the following percentage change formula:

$($Percentage Change in $M$ Percentage Change in $V$ Percentage Change in $P$ Percentage Change in $Y.)$