Macroeconomics,

If nominal GDP is $300 billion and the money supply is $20 billion, What must be the velocity? (b)If the money supply decreases and the velocity does not change, what will happen to nominal GDP?

  1. 👍 0
  2. 👎 0
  3. 👁 56

Respond to this Question

First Name

Your Response

Similar Questions

  1. Macroeconomics,

    If nominal GDP is $300 billion and the money supply is $20 billion, What must be the velocity? (b)If the money supply decreases and the velocity does not change, what will happen to nominal GDP?

    asked by mercedes on June 21, 2010
  2. Macroeconomics

    The money supply in Freedonia is $200 billion. Nominal GDP is $800 billion and real GDP is $400 billion. Assuming that velocity is stable, if real GDP grows by 10 percent this year, and if the money supply does not change this

    asked by Jess on April 9, 2013
  3. Principles of Finance

    Determine the size of the M1 money supply using the following information. Currency $700 billion Money market mutual funds $2,000 billion Demand deposits $300 billion Other checkable deposits $300 billion Traveler’s checks $10

    asked by Jason on January 13, 2013
  4. Economics

    If a government raises its expenditures by $50 billion and at the same time levies a lump-sum tax of $50 billion, the net effect on the economy will be to: a. increase GDP by less than $50 billion b. increase GDP by more than $50

    asked by Amy on November 5, 2006
  5. Macroeconomics

    GDP of a country is 6000 billion. Investment is 2100 billion. Government purchase is 300 billion. The country has a trade surplus of 200 billion. How much is consumption? Was there net capital inflow or outflow? Can someone help

    asked by Jess on April 10, 2013
  6. Economics

    The value of the marginal propensity to save is 0.2. If real GDP increases by $50 billion, this situation was the result of an increase in the aggregate expenditures schedule of: a. $10 billion b. $15 billion c. $16 billion d. $40

    asked by Amy on November 5, 2006
  7. Economics

    Suppose that S(savings) = $4 billion when Real GDP = $200 billion & S(savings) = $104 billion when Real GDP = $600 billion. If Autonomous investment falls by $100 billion what would be the effect on Real GDPeqm.? Note: eqm. =

    asked by Sarah on April 23, 2007
  8. economics

    Am i right, just checking as too many wrong homework assignments at the start of this semester have messed up my grades If the required reserve ratio is 0.2, by how much could the money supply expand if the central bank purchased

    asked by jill on May 24, 2013
  9. ECO

    suppose US nominal GDP was $6,250 billion in 2000 and GDP chain price index is 125.0. Real GDP is:

    asked by rodney on December 3, 2014
  10. economics

    in 1990, US nominal GDP was $5,744 billion and the GDP chain price index is 93.6. Real GDP in 1996 dollars is approximately:

    asked by rodney on December 3, 2014

More Similar Questions