Answer to Question #59179 in Macroeconomics for Junior
A. Why would V fall?
B. What would this do to Q or P (= MV, or V=PQ/M)?
C. Is your answer consistent with what actually happened?
B. This may cause a decrease in Q or P (MV = PQ, or V=PQ/M), which may cause the overall decrease in GDP.
C. The answer is consistent with the situation, that is actually happened.
Need a fast expert's response?Submit order
and get a quick answer at the best price
for any assignment or question with DETAILED EXPLANATIONS!