Use the quantity equation to answer the following: 1. What is the velocity of money when the price level is at 4, real GDP sits at $150 million and money supply is currently $100 million. 2. How much is real GDP if the price level is 2.5, velocity of money is 5 and money supply is $400,000? 3. If nominal GDP=$360 billion and velocity of money is 4, what is the current money supply? When the nominal interest rate is set at 4.5% and inflation is 2%, what is the real interest rate?

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

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