What the effects would be if real gdp is growing


Consider the equation of exchange:

Mv = PY

Suppose that the velocity of money is constant. Under a gold standard, continual increases in the supply of money are implausible for a world economy that is growing over time. Use the equation of exchange above to indicate what the effects would be if real GDP is growing, and both the velocity of money and the money stock are constant.

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Microeconomics: What the effects would be if real gdp is growing
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