25. The table provides some data for the United States in the first decade following the Civil War. Quantity of money Real GDP (1929 dollars) Price level (1929 = 100) Velocity of circulation 1869 $1.3 billion $7.4 billion X 4.50 1879 $1.7 billion. Z 54 4.61 Source of data: Milton Friedman and Anna J. Schwartz, A Monetary History of the United States 1867-1960. a. Calculate the value of X in 1869. b. Calculate the value of Z in 1879. c. Are the data consistent with the quantity theory of money? Explain your answer.

25. The table provides some data for the United States in the first decade following the Civil War. Quantity of money Real GDP (1929 dollars) Price level (1929 = 100) Velocity of circulation 1869 $1.3 billion $7.4 billion X 4.50 1879 $1.7 billion. Z 54 4.61 Source of data: Milton Friedman and Anna J. Schwartz, A Monetary History of the United States 1867-1960. a. Calculate the value of X in 1869. b. Calculate the value of Z in 1879. c. Are the data consistent with the quantity theory of money? Explain your answer.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter15: Monetary Theory And Policy

Section: Chapter Questions

Problem 3.7P

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