If the money supply is $6,000, velocity is 5, and Real GDP is 10,000 units of output, then the price level is . If the money supply doubled over a short time period to $12,000, the simple quantity theory of money would predict that .

Answer and Explanation:

The computation is shown below:

The Price level in the normal case

= Money supply ÷ Real GDP × Velocity

= $6,000 ÷ 10,000 units × $5

= $3

Now in the case when the money supply doubled i.e $12,000

So, the price level is

= Money supply ÷ Real GDP × Velocity

= $12,000 ÷ 10,000 units × $5

= $6

When the money supply doubles, the price level is also doubled that indicated the direct relationship between the price level and money supply

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

i think the answer is a. dependable person

i hope this is right!