4. The quantity theory of money: What is the key endogenous variable in the quantity theory? Explain the effect on this key variable of the following changes: 1. The money supply is doubled. 2. The velocity of money increases by 10%. 3. Real GDP rises by 2%. 4. The monev supply increases by 3% while real GDP rises by 3%% at the same time.
4. The quantity theory of money: What is the key endogenous variable in the quantity theory? Explain the effect on this key variable of the following changes: 1. The money supply is doubled. 2. The velocity of money increases by 10%. 3. Real GDP rises by 2%. 4. The monev supply increases by 3% while real GDP rises by 3%% at the same time.
Chapter13: Monetary Policy
Section: Chapter Questions
Problem 6E
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