Homework Answers
a) As per Quantity Theory of money (QTM),
MV = PY
Here, P = 1, M= 200 and Y = 1000.
Therefore, V = PY/V = 1*1000/200 = 5
Hence, the velocity of money is 5.
P.S. : As HOMEWORKLIB's policy, if nothing is mentioned than only the first question is to be answered.
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