If velocity = 5,the price level = 2,and the real value of output is 2,500,then the quantity of money is
A)$250.
B)$25,000.
C)$1,000.
D)$6,250.

Name: If velocity = 5,the price level = 2,and the real value of output is 2,500,then the quantity of money is A)$250. B)$25,000. C)$1,000. D)$6,250.
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Question

Quizplus · Accepted Answer

The quantity equation is MV = PY, where M is the quantity of money, V is velocity, P is the price level, and Y is the real value of output. Plugging in the values: M * 5 = 2 * 2,500, solving for M gives M = 1,000.

If Velocity = 5,the Price Level = 2,and the Real