Problem
Answer questions a-e.
a. What is the equation of exchange?
b. In the equation of exchange, if V doubled, what would happen to nominal GDP as a result?
c. In the equation of exchange, if V doubled and Q remained unchanged, what would happen to the price level as a result?
d. In the equation of exchange, if M doubled and V remained unchanged, what would happen to nominal GDP as a result?
e. In the equation of exchange, if M doubled and V fell by half, what would happen to nominal GDP as a result?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.