Ask Question
12 April, 11:15

If velocity were constant at 2 while m2 rose from $5 trillion to $6 trillion in a single year, what would happen to nominal gdp?

+2
Answers (1)
  1. 12 April, 11:41
    0
    Money growth + velocity growth = growth of nominal GDP, so nominal GDP would rise by (6-5) / 5*100 percent + 0 percent = 20 percent. Nominal GDP growth = inflation rate + real growth
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “If velocity were constant at 2 while m2 rose from $5 trillion to $6 trillion in a single year, what would happen to nominal gdp? ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers