Suppose that the money supply of a country is $80 billion and the velocity of money is 4. The economy's production capacity is expected to grow by 1.5 percent over the next year. According to a strict monetarist perspective, what should be the total money supply by the end of the year in order to support the expected increase in capacity? Instructions: Round your answer to 1 decimal place. $ billion

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter20: Monetary Policy
Section: Chapter Questions
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Suppose that the money supply of a country is $80 billion and the velocity of money is 4. The economy's production capacity is
expected to grow by 1.5 percent over the next year. According to a strict monetarist perspective, what should be the total money
supply by the end of the year in order to support the expected increase in capacity?
Instructions: Round your answer to 1 decimal place.
LA
billion
Transcribed Image Text:Suppose that the money supply of a country is $80 billion and the velocity of money is 4. The economy's production capacity is expected to grow by 1.5 percent over the next year. According to a strict monetarist perspective, what should be the total money supply by the end of the year in order to support the expected increase in capacity? Instructions: Round your answer to 1 decimal place. LA billion
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