Recall the Equation of Quantity theory of money and calculate-00682
This subjective question is related to the book/course
vu cs408 Human Computer Interaction.
It can also be found in
vu cs408 Mid Term Solved Past Paper No. 2.
Question 1: Recall the Equation of Quantity theory of money and calculate the missing figure in each of the following cases:
MV = PQ
100xV = 3 x 200
V = 600 / 100
V = 6b) Velocity of money (V) = 4, Price (P) = 5 and output (Q) =100.Calculate the missing figure.
MV = PQ
M x 4 = 5 x 100
M = 500 / 4
M = 125c) Money supply (M) = 200, velocity of money (V) = 7 and output (Q) = 700.Calculate the missing figure.
MV = PQ
200 x 7 = P x 700
P = 1400 / 700
- Money supply (M) =100, Price (P) = 3 and real output (Q) = 200.
- Velocity of money (V) = 4, Price (P) = 5 and output (Q) =100.
- Money supply (M) = 200, velocity of money (V) = 7 and output (Q) = 700. Calculate the missing figure.
Answer:
a) Money supply (M) = 100, Price (P) = 3 and real output (Q) = 200.Calculate the missing figure.MV = PQ
100xV = 3 x 200
V = 600 / 100
V = 6b) Velocity of money (V) = 4, Price (P) = 5 and output (Q) =100.Calculate the missing figure.
MV = PQ
M x 4 = 5 x 100
M = 500 / 4
M = 125c) Money supply (M) = 200, velocity of money (V) = 7 and output (Q) = 700.Calculate the missing figure.
MV = PQ
200 x 7 = P x 700
P = 1400 / 700
