What is the equation of exchange if nominal gdp is 12, Ask an Expert

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What is the equation of exchange? If nominal GDP is $12 trillion and the money supply is $1.5 trillion, what is velocity?

If the Fed increases the nominal money supply, what happens to nominal GDP?

(Hint: First assume that velocity is constant and then relax this assumption.) Can we be sure of the direction of change in prices and real GDP?

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Financial Management, Finance

Category:- Financial Management
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