Using the quantity equation of money mv=pq, calculate the money supply (m) if velocity (v) equals 4, the price level (p) equals 100, and real gdp (q) equals 125.
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The money supply using the quantity equation of money mv=pq, will be 3125.We have,The quantity equation of money,i.e. mv = pq,Here,m = money supply,v = velocity ,p = price level,q = real gdpSo,Now,According to the question,To find money supply,We will use The quantity equation of money,i.e. mv = pq,So,Now,Putting values,i.e.Money supply × velocity = price level × real gdp,i.e.m × 4 = 100 × 125On solving we get,m = 3125i.e.Money supply = 3125,So,The money supply using the quantity equation of money = 3125.Hence we can say that the money supply using the quantity equation of money mv = pq, will be 3125.Learn more about quantity equation of money herehttps://brainly.com/question/15184412#SPJ4