Question

If real output is $9,000, and the price level is 2, and the velocity of money is 3, then the money supply is

Answer 1

The money supply given the real output, price level and velocity of money is  $6000.

What is the quantity theory of money?

The quantity theory of money states that the price of goods and services in an economy is directly proportional to the money supply.

Quantity theory of money = price x real output = money supply x velocity

Money supply = (price x real output) / velocity

(2 x 9000) / 3 = $6000

To learn more about the quantity theory of money, please check: https://brainly.com/question/26370040

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