Quantity Theory of MoneyUse the quantity equation to fill in the blanks in the following table.Price Level (P)Real Output (Y)Money Supply (M)Velocity of Money (V$1$10,000$5,000$1$15.000$2$25,000%24$8,000$32.00012 ptsQuestion 4Inflation and Interest RatesUse the equation relating inflation and interest rates to fill in the bilanks in the following table.Nominal Interest Rate (K)Inflation Rate (X)Real Interest Rate ()2.754.5253.5

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Use the quantity equation to fill in the blanks in the following table. Price Level (P) Real Output (Y) Money Supply (M) Velocity of Money M $1 $10.000 $5,000 $1 $15.000 $2 $25.000 $8.000 $32.000

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Money Growth And Inflation

Section: Chapter Questions

Problem 5CQQ

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Question

Quantity Theory of Money
Use the quantity equation to fill in the blanks in the following table.
Price Level (P)
Real Output (Y)
Money Supply (M)
Velocity of Money (V
$1
$10,000
$5,000
$1
$15.000
$2
$25,000
%24
$8,000
$32.000
1
2 pts
Question 4
Inflation and Interest Rates
Use the equation relating inflation and interest rates to fill in the bilanks in the following table.
Nominal Interest Rate (K)
Inflation Rate (X)
Real Interest Rate ()
2.75
4.5
25
3.5

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