Using the equation of exchange, if the nominal GDP is $8,000 billion and the money supply is $1,600 billion, then

Name: Using the equation of exchange, if the nominal GDP is $8,000 billion and the money supply is $1,600 billion, then
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The equation of exchange is MV = PQ, where M is the money supply, V is the velocity of money, P is the price level, and Q is the real GDP. Given nominal GDP (PQ) is $8,000 billion and M is $1,600 billion, solving for V gives V = PQ/M = $8,000 billion / $1,600 billion = 5.

Using the Equation of Exchange, If the Nominal GDP Is