In an economy, the money supply (M) is ₹500 crores, the velocity of money (V) is 5 and the total number of transactions (T) is 10,000. Calculate the…
CA Foundation · Business Economics · PYQS · September 2024
In an economy, the money supply (M) is ₹500 crores, the velocity of money (V) is 5 and the total number of transactions (T) is 10,000. Calculate the average price level (P) in the economy.
Suggested Answer and Working Notes:
Correct Answer: Option (B)
B. ₹ 25 thousand
Topics: Theory of Demand and Supply, Money Market
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