Assume that the VM will turn over four times next year. If the country wants a GDP of $22 billion at the end of next year, what will have to be the size of the money supply? What percentage increase in the MS will be necessary achieve the target GDP?
GDP = 20 MS = 5 VM=4© BrainMass Inc. brainmass.com October 5, 2022, 5:43 pm ad1c9bdddf
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If GDP =22, VM=4 then
MS= 5.5= Answer
Percentage increase in the MS will be necessary achieve the target GDP=
(New MS-Old MS)/OldMS