According to the equation of exchange,if real GDP is $2 trillion and the money supply is $0.5 trillion,the velocity of money:
A)must be 4.
B)must be 1/4.
C)must be 4 trillion.
D)must be 1/4 trillion.
E)cannot be determined unless we know the price level.

Question

Quizplus · Accepted Answer

The Answer of According to the equation of exchange,if real GDP is $2 trillion and the money supply is $0.5 trillion,the velocity of money:
A)must be 4.
B)must be 1/4.
C)must be 4 trillion.
D)must be 1/4 trillion.
E)cannot be determined unless we know the price level.

According to the Equation of Exchange,if Real GDP Is $2