According to the equation of exchange,if GDP equals $400 billion and the money supply equals $50 billion,the velocity of money

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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 quantity of goods and services produced (GDP). Given GDP ($400 billion) and money supply ($50 billion), solving for V gives V = PQ/M. Since PQ is equivalent to GDP, V = $400 billion / $50 billion = 8.

According to the Equation of Exchange,if GDP Equals $400 Billion