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According to the quantity theory of money, if money supply is $1,000 million, the overall price level is 200, and real GDP is 50 million, then the velocity of money is equal to:

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sakshigupta4990

In the quantity theory of money, MV = PY

V = 200 × 50 / 1000 = 10

Ans a.

P = price level

Y = GDP

V = velocity

M = money supply

Real GDP is a measure of a country's gross domestic product that has been adjusted for inflation.

The transaction's velocity is the number of times on average that a dollar is used for a transaction. If the velocity were fifty-two, for example, then on average a dollar changes hands once each week. Consider a company town, in which weekly town product is $100. The money supply is $100.

Learn more about the velocity of money at

https://brainly.com/question/7206940

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