Suppose the money supply is $1000 and the aggregate price level is 100. What is the amount of real money in the country?

Question

BlackTom AI · Accepted Answer

The concept at play is real money balances, which is calculated as M/P, where M is the nominal money supply and P is the aggregate price level.
Here, M = 1000 and P = 100. Dividing gives 1000 / 100 = 10.
Therefore, the amount of real money in the country is 10 (in the same monetary units as M and adjusted for the price level).
Note: The provided data does not include answer options to evaluate, but the calculation above yields the real money value as 10.

Suppose the money supply is $1000 and the aggregate price level is 100. What is the amount of real money in the country?

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Suppose the money supply is $1000 and the aggregate price level is 100. What is the amount of real money in the country?

Suppose the money supply is $1000 and the aggregate price level is 100. What is the amount of real money in the country?

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