All other things being equal, by how much will nominal GDP expand if the central bank increases the money supply by $100 billion, and the velocity of money is 2 5 Suppose now that economists expect the velocity of money to increase by 50 as a result of the monetary stimulus What will be the total increase in nominal GDP Explain what happened to the velocity of money in the United States and EU in the Spring Summer of 2020

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Question: All other things being equal, by how much will nominal GDP expand if the central bank increases the money supply by $100 billion, and the

All other things being equal, by how much will nominal GDP expand if the central bank increases the money supply by $100 billion, and the velocity of money is 2.5?

Suppose now that economists expect the velocity of money to increase by 50% as a result of the monetary stimulus. What will be the total increase in nominal GDP?
Explain what happened to the velocity of money in the United States and EU in the Spring/Summer of 2020?

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