Respuesta :
The quantity of money if the the inflation rate is 3.0 percent a year, the price level is 1.2, and the velocity of circulation is 8.0 would be $150.
The Quantity of money can be described as the common price degree of items and services is directly proportional to the number of money in circulation, or money supply. Quantity of money may be defined as money supply and price level in an economy are in direct proportion to one another. To calculate the quantity of money we can use the this formul:
money supply × velocity of money = price level × real GDP.
money supply x 8.0 = 1.2 x $1000
8 x money supply = 1,200
Divide two side by 8
money supply = $150
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