If the GDP price index is 150, real GDP is $10 trillion, and the quantity of money is $5 trillion, what is the velocity of circulation? The velocity of circulation is ____?

Money market equilibrium depends on what the central bank targets. How does the money market adjust to the equilibrium? If the central bank targets _______. A. the short-term interest rate, the quantity of money demanded adjusts B. the quantity of money demanded, the short-term interest rate adjusts C. the monetary base, the quantity of money supplied adjusts D. the quantity of money, the short-term interest rate adjusts

Do not type in dollar signs or round any of your answers. Modern Quantity Theory of Money Problem. In year one, the money supply (M) is equal to 500, the velocity of money (V) is 8, and the price level is 1.0. According to the equation of exchange, in year 1, nominal and real GDP are both equal to In year 2, the money supply is increased to 522.75 and velocity is unchanged. If the economy grew at the rate of 2.5 percent, real GDP in year 2 is equal to while nominal GDP in year 2 is equal to As a result of the Fed's decision to increase the money supply from 500 to 522.75, the price level rose from 1.0 to indicating that the inflation rate was percent.

In the Country A, the velocity of money is constant. The growth rate of real GDP is by 6% per year, the money supply grows by 20% per year, and the nominal interest rate is 24%. What is the real interest rate in the in the Country A ?