In the country of Sparta, money supply equals 13 million drams, real GDP is 65 million drams, the price level is 1.2, and the velocity of money is 6. a. What is the value of its nominal GDP? Nominal GDP: $ million drams. b. If, in the next year, V remains constant and real GDP increases to 78 million drams, what must happen to money supply in order to keep prices stable? Round your answer below to 1 decimal place. million drams. Money supply must (Click to select) v to

Q: If nominal GDP is $400, real GDP is $200, and the money supply is $100, then what is the price level…

A: A way of measuring the economic wellbeing of a nation, the GDP is the amalgamation of all the values…

Q: If the demand for money depends positively on real income and depends inversely on the nominal…

A: The money demand is a downward sloping curve which shows the relation between the money demand and…

Q: The speculative demand for money suggests that:

A: To find : What does Speculative demand for money suggests

Q: .......... implies that an increase in .......... will increase ........... a.Neutrality of…

A: Money supply refers to the total supply of money, that is circulating in the economy. The money…

Q: All other things being equal, by how much will nominal GDP expand if the central bank increases the…

A: According to Classical economics' Fisher's equation of Exchange, nominal GDP is equal to quantum of…

Q: The velocity of money in the small Republic of Sloagia is always the same. Last year, the money…

A: Here we calculate the following terms by using the given information , so the calculation of the…

Q: You are the head of the central bank and you want to maintain 2 percent long-run inflation. Velocity…

A: Quantity theory of money shows a relationship between country's money supply, inflation rate and…

Q: According to the quantity theory of​ money, what must the growth rate of the money supply be given…

A: According to the quantity theory of money, there is direct relationship between the quantity of…

Q: ....... implies that an increase in .... will increase ...... a) neutrality of money / inflation /…

A: Answer: Correct option: c (neutrality of money / the money supply / nominal interest rates)…

Q: All other things being equal, by how much will nominal GDP expand if the central bank increases the…

A: The overall price level of products and services is proportional to the money supply in an economy,…

Q: The velocity of money in the small Republic of Sloagia is always the same. Last year, the money…

A: According to the quantity theory money, the sum of the growth rate of money supply and the velocity…

Q: All other things being equal, by how much will nominal GDP expand if the central bank increases the…

A: Hi, thank you for the question. As per our Honor code, we are allowed to attempt first three sub…

Q: Suppose that this year, the money supply grows by 6%, velocity increases by 1%, and real GDP…

A: By definition, we assume that the growth rate of price level is the inflation rate. growth rate of…

Q: If nominal GDP is $400, real GDP is $200, and the money supply is $100, then what is the price level…

A: There is a relation between Nominal GDP and Real GDP. Nominal GDP= Real GDP +Inflation Money supply=…

Q: Why don't economists agree with backing paper money with a certain commodity, such as gold? Supplies…

A: Why don't economists agree with backing paper money with a certain commodity, such as gold?…

Q: If the money supply (M) is $300, the real GDP (Q) is 200, the velocity of money (V) is 6, the…

A: Real GDP is the value of output produced in the economy by taking inflation into account. The money…

Q: If Money Supply is $11,000, real GDP is 31,500, and velocity of money is 2.6, then how much is price…

A: The price level (P) can be calculated by substituting the values of money supply (M), the velocity…

Q: In 2018, assume the economy was at full employment with the following economic data: Real GDP: $7…

A: Money Supply All money supply - cash, foreign exchange and bank accounts - is in circulation. For…

Q: urgent!! This country is witnessing a recession. The Chief economist in the government of this…

A:

Q: Refer to the diagram. Other things equal, the money demand curve in the diagram would shift leftward…

A: Graph Explanation: The Y-axis of the graph shows the interest rates and the X-axis shows the…

Q: If velocity is constant and nominal GDP increases by 5% what is happening to the money supply?please…

A: Money Supply:- The money supply refers to the the entire amount of cash and other liquid assets in a…

Q: The velocity of money in the small Republic of Sloagia is always the same. Last year, the money…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Suppose the Federal Reserve (the US central bank) increases the money stock. Which of the following…

A: The increase in the money supply is mirrored by an equal increase in nominal output, or Gross…

Q: Suppose a country's nominal GDP is $120 billion. The money supply is $100 billion. What is the…

A: GDP is the value of the basket of goods and services produced within the borders of a country at a…

Q: If inflation is 5%, the real growth rate is 3%, and the change in velocity is 2%, then the increase…

A: Quantity Theory of Money (QTM) reflects that the change in the price level or inflation is directly…

Q: 1.6 Which of the following will cause the demand curve for money to shift to the right? (a) An…

A: the demand curve for money to shift to the

Q: According to John Maynard Keynes, Answer the demand for money in a country is determined entirely by…

A: Hi, thank you for the question. As per our Honor code, we are allowed to attempt only first…

Q: If Money Supply is $11,000, real GDP is 31,500, and velocity of money is 2.6, then how much is price…

A: Given supply:Money supply=M=$11,000real GDP=Y=31,500velocity of money=V=2.6

Q: According to the quantity theory of​ money, what must the growth rate of the money supply be given…

A: The Quantity-Theory-of-Money(QTM) dictates that the money-supply in the nation and the…

Q: MS, MS, MD M2 M, QUANTITY OF MONEY The graph above shows a decrease in the money supply. Which of…

A: A fiscal policy is used by the government to stabilize the economy and the tools are taxes and…

Q: Which of the following will not increase the money supply? 1, The RBA purchasing bonds from private…

A: The money supply is the monetary policy which is controlled by the central bank. The central bank…

Q: Suppose the velocity of money is 10 transactions per year, the price level for 2015 is $6, and real…

A: According to the quantity theory of money: MV = PY Where M is money supply V is velocity P is price…

Q: If real GDP is $40 billion, the price level 30, and the velocity of money is 24, what does the…

A: Given data: Real GDP is $40 billion. Price level is 30. Velocity of money is 24.

Q: he annual average percentage change in Real GDP is 2.7%, and the annual average percentage change in…

A: The predetermined rule of money is used to keep the prices stable on an average, If it shows growth…

Q: Suppose that this year s money supply is $7.5 trillion, nominal GDP is $22.5 trillion, and real GDP…

A: The velocity of money is a measurement of the rate at which money is exchanged in an economy. Here,…

Q: In the country of Sparta, money supply equals 11 million drams, real GDP is 80 million drams, the…

A: Nominal GDP is the market value of all goods and services which is produced in the country during a…

Q: Consider a situation where the central bank increases the money supply. All other things being…

A: Here, given information is, Change (increase) in nominal GDP: $800 billion Velocity of money: 4 To…

Q: Kindly help with the questions below. (1). If the growth rate of the  money supply increases to 18%…

A: According to the quantity theory of money: M x V = P x Y [M: Money supply, V: Velocity, P: Price…

Q: The quantity equation of money can be written as: Money Supply (M) x Velocity (V) GDP Deflator (P) x…

A: Quantity theory of money is an equation that shows relationship between money supply, velocity,…

Q: Need help with this. If nominal GDP is $100 and the money supply is $25 then money velocity is?

A: Introduction The money velocity is a measurement of how many times an average unit of currency is…

Q: Question 5. Consider an economy in which the money demand function takes the form: (M/PL = L (1, Y)…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: Suppose nominal GDP is​ $2,000 a year and the quantity of money is​ $400. Then the velocity of…

A: Solve this question with formula

Q: how a monetary injection affects the price level in an economy, and the value of money. Explain one…

A:

Q: In Canada during 2020, GDP grew slowly, while M1+ grew by 28%, its highest level since October 1985.…

A: All the currency and cash or any liquid assets which can easily be converted into cash is called the…

Q: If Money Supple is $14,500, real GDP is 30,500, and velocity of money is 2.3, then how much is the…

A: here we calculate the price level by using the velocity and money supply and Real GDP so the…