Suppose that this year's money supply is $600 billion, nominal GDP is $15 trillion, and real GDP is $3 trillion. and the velocity of money is The price level is Suppose that velocity is constant and the economy's output of goods and services rises by 3 percent each year. Use this information to answer the questions that follow. If the Fed keeps the money supply constant, the price level will and nominal GDP will True or False: If the Fed wants to keep the price level stable instead, it should increase the money supply by 3% next year. True False %. (Hint: The quantity equation can If the Fed wants an inflation rate of 9 percent instead, it should the money supply by be rewritten as the following percentage change formula: (Percentage Change in M) + (Percentage Change in V)= (Percentage Change in P) + (Percentage Change in Y).)