Assume the money supply is $800, the velocity of money is 8, and the price level is 2. Using the quantity theory of money: a. Determine the level of real output. $ 3200 3200 Correct b. Determine the level of nominal output. $ 6400 6400 Correct c. Assuming velocity remains constant, what will happen if the money supply rises 20 percent? Real output would be $ 3840 3840 Incorrect , and real output would be $ 3840 3840 Incorrect . d. If the government established price controls and also raised the money supply 20 percent, what would happen? Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click the option twice to empty the box. The velocity of money would decrease. checked Real output would increase. checked The equation of exchange wouldn't hold. checked The price level would fall. checked The velocity of money would increase. checked Real output would decrease. checked