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qid 7003 · economics
Question: If members of the economy wish to hold money balances equalto 5 weeks of expenditure, and all income is spent, whatwill be the desired level of money balances when aggregateincome is $1,600 billion per annum?
- $153,846 billion
- $307,692 billion
- $10,400 billion
- $5,000 billion
- $80,000 billion
- $160,000 billion
- $123,077 billion
- $200,000 billion
- $30,769 billion
- $1,600 billion
Our answer: A. $153,846 billion Source quote machine-checked (exact quote)
How it was answered
Multi-step solver (maze), replayed by code
Current source
Wikipedia, "Cambridge equation"
https://en.wikipedia.org/wiki/Cambridge_equation
“This portion of cash is commonly represented as k, a portion of nominal income (the product of the price level and real income, P · Y).”
Source quote machine-checked (exact quote)
Earlier version (superseded)
https://en.wikipedia.org/wiki/Cambridge_equation
Source weak (http_get_200_text_and_question_terms)
Earlier version (superseded)
No public source has been found for this card yet (3 places checked internally).
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