Question: If velocity were constant at 2 while M2 rose from $5 trillion to $10 trillion in a single year, what would happen to nominal GDP?

If velocity were constant at 2 while M2 rose from $5 trillion to $10 trillion in a single year, what would happen to nominal GDP?

Instructions: Enter your responses rounded to two decimal places.

Nominal GDP would rise by percent.

If real GDP rose 3 percent, what would be the level of inflation?

Inflation would equal percent.

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