Quantecon Is a Country in Which the Quantity Theory of Money

Multiple Choice

Quantecon is a country in which the quantity theory of money operates.The country has a constant population, and technology.In year 1, real GDP was $400 million, the GDP deflator was 200 a price level of 2) , and the veloc circulation was 20. In year 2 the quantity of money was 20 percent higher than in year 1.The quantity of money in year 1 was _______.
The quantity of money in year 2 was _______.
The GDP deflator in year 2 is _______.

A) $40 million; $48 million; 240
B) $20 million; $24 million; 220
C) $80 million; $88 million; 200
D) $20 million; 24 million; 240
E) $40 million; $48 million; 220