Questions: If M is 50, V is 10 , and Q is 250, what is the result? a. P must be 2 . b. P must be negative. c. P must be 1 . d. P must be 0 .

The answer is the first one (a): P must be 2.

Explanation: To determine the value of P, we need to understand the relationship between the given variables. The question does not explicitly state the formula, but it is likely referring to the equation of exchange in economics, which is given by:

\[ M \times V = P \times Q \]

Where:

• \( M \) is the money supply
• \( V \) is the velocity of money
• \( P \) is the price level
• \( Q \) is the quantity of goods and services

Given: \[ M = \$50 \] \[ V = 10 \] \[ Q = \$250 \]

We need to find \( P \). Using the equation of exchange:

\[ M \times V = P \times Q \]

Substitute the given values:

\[ 50 \times 10 = P \times 250 \]

\[ 500 = P \times 250 \]

Solve for \( P \):

\[ P = \frac{500}{250} \]

\[ P = 2 \]

Therefore, the correct answer is: a. P must be 2.