Based on the quantity equation,if Y = 3,000,P = 3,and V = 4,then M =
A)$4,000.
B)$2,250.
C)$250.
D)$36,000.

Name: Based on the quantity equation,if Y = 3,000,P = 3,and V = 4,then M = A)$4,000. B)$2,250. C)$250. D)$36,000.
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Question

Quizplus · Accepted Answer

The quantity equation is MV = PY, where M is the nominal money supply, V is the velocity of money, P is the price level, and Y is real GDP. Given Y = 3,000, P = 3, and V = 4, we can solve for M as:

M = PY/V
  = 3 x 3,000/4
  = $2,250

Therefore, the answer is B).

Based on the Quantity Equation,if Y = 3,000,P = 3,and