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If the money supply is $3, the velocity of money is 2, and the quantity of output is 6. What is the value of the price level according to the quantity theory of money? Show your calculation

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If the money supply is $3, the velocity of money is 2, and the quantity of output is 6. What is the value of the price level according to the quantity theory of money? Show your calculation
Answered Same Day Dec 22, 2021

Solution

Robert answered on Dec 22 2021
127 Votes
If the money supply is $3, the velocity of money is 2, and the quantity of output is 6. What is the value of the price level according to the
quantity theory of money? Show your calculation
As per the quantity theory of money
Money supply*velocity of money = Price level*quantity of output...
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