What happens to nominal GDP if the money supply grows by 20% but velocity declines by 30%?

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Managing in a Global Economy Demystifying International Macroeconomics

ISBN: 978-1285055428

2nd edition

Authors: John E. Marthinsen

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Question Posted: Mar 13, 2018 08:46 AM

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Calculate what happens to nominal GDP if velocity remains constant at 5 and the money supply increases from $200 billion to $300 billion.
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What happens to nominal GDP if the money supply grows by 20% but velocity declines by 30%?

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Managing in a Global Economy Demystifying International Macroeconomics

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