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1. 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 gdp

   So,

   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 × 125

   On solving we get,

   m = 3125

   i.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.

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