Assume the money supply is $200, the velocity of money is 9, and the price level is $8. using the quantity theory of money: a. determine the level of real output. b. determine the level of nominal output. c. assuming velocity remains constant, what will happen if the money supply rises 20 percent? nominal output would be $ , and real output would be $. if the government established price controls and also raised the money supply 40 percent, what would happen? a. the equation of exchange wouldn't hold. b. shortages would result in a perfectly competitive economy. c. real output will increase in a monopolistic economy. d. the velocity of money might decrease.