According to the quantity theory of money, if nominal GDP is $800, real GDP is $600, and money supply is $400, then Select one: a. the price level is ¾, and velocity is 2. b. the price level is 2/3, and velocity is 2. c. the price level is 1.33, and velocity is 2. d. the price level is 1.33, and velocity is 1.5. e. the price level is 1.33, and velocity is 1.4.

According to the quantity theory of money, if nominal GDP is $800, real GDP is $600, and money supply is $400, then Select one: a. the price level is ¾, and velocity is 2. b. the price level is 2/3, and velocity is 2. c. the price level is 1.33, and velocity is 2. d. the price level is 1.33, and velocity is 1.5. e. the price level is 1.33, and velocity is 1.4.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: Money Growth And Intlation

Section: Chapter Questions

Problem 2CQQ

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