Answer:
Velocity of money = 4
Explanation:
Given:
Money supply M = 6,000
Price level P = 2
Real GDP Y = 12,000
Find:
Velocity of money
Computation:
Velocity of money = [Price level x Real GDP] / Money supply
Velocity of money = [P x Y] / M
Velocity of money = [12,000 x 2] / 6,000
Velocity of money = [24,000] / 6,000
Velocity of money = 24 / 6
Velocity of money = 4
