Quantity theory of money practice problems

Macroeconomics Unit 5. Try each one, then open the worked solution. The Credit Sprint app generates unlimited new versions with fresh numbers.

Problem 1.

The money supply is $800 billion and velocity is 2. What is nominal GDP?

Show solution

M × V = 800 × 2 = $1600B.

Problem 2.

The money supply is $300 billion and velocity is 3. What is nominal GDP?

Show solution

M × V = 300 × 3 = $900B.

Problem 3.

The money supply is $300 billion and velocity is 5. What is nominal GDP?

Show solution

M × V = 300 × 5 = $1500B.

Problem 4.

The money supply is $400 billion and velocity is 4. What is nominal GDP?

Show solution

M × V = 400 × 4 = $1600B.

Problem 5.

The money supply is $300 billion and velocity is 3. What is nominal GDP?

Show solution

M × V = 300 × 3 = $900B.

Problem 6.

The money supply is $900 billion and velocity is 4. What is nominal GDP?

Show solution

M × V = 900 × 4 = $3600B.