Much of the economic news we read about can be reinterpreted into our “Mv = PY” framework. Turn each of the following news headlines into a precise statement about M, v, P, or Y.
a. “Deposits in U.S. banks fell in 2015.”
b. “American businesses are spending faster than ever.”
c. “Prices of most consumer goods rose 12% last year.”
d. “Workers produced 4% more output per hour last year.”
e. “Real GDP increased 32% in the last decade.”
f. “Interest rates fall: Consumers hold more cash.”