Question

If the money supply is $6 trillion, the price level of 120, and the real output is $300 billion, what is the velocity of money

Answer 1

6

Explanation:

Using the formula for velocity of money:

Velocity of money = (Price level x Real output) / Money supply

Plugging in the given values, we get:

Velocity of money = (120 x 300 billion) / 6 trillion

Velocity of money = 6

Therefore, the velocity of money is 6.