Business
Business, 28.09.2019 01:30, catwomn

Inhabitants of pandora use stone beads as money. on average, every stone bead is used 5 times per year to carry out transactions. the total supply of beads is 50 million. according to the quantity theory of money, the level of aggregate spending in pandora must be 250 million.
a) what is the level of aggregate spending in pandora according to the quantity theory of money? b) suppose the inhabitants of pandora start using less money to conduct the same number of transactions (i. e., each individual carries fewer beads). what is the effect on the velocity of money?

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Inhabitants of pandora use stone beads as money. on average, every stone bead is used 5 times per ye...

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