Comments on the homework due Friday, Dec. 1

I need to clarify some wording on problem 1.

(D below is the delta, or triangle. I can't get that symbol to show here)

To determine what is happening to velocity you should calculate the percentage change in velocity (D%V), rather than velocity (V) itself (you don’t have a starting value to determine that). In this problem velocity is NOT assumed to be stable or constant.

Use the equation D%M + D%V = D%nominal GDP.

For problem 3, D%V = 0% (under the quantity theory). Use the equation

D%M + D%V = D%P + D%Y.

I apologize for any confusion. Good luck.