If nominal GDP is $7 trillion, and the money supply is $2 trillion, then what is the velocity of money?
A) 14.
B) 7.
C) 3.5.
D) 2.

Name: If nominal GDP is $7 trillion, and the money supply is $2 trillion, then what is the velocity of money? A) 14. B) 7. C) 3.5. D) 2.
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Question

Quizplus · Accepted Answer

The velocity of money can be calculated as Nominal GDP / Money Supply. Therefore, the velocity of money is 7 trillion / 2 trillion = 3.5. The correct answer is (C).

If Nominal GDP Is $7 Trillion, and the Money Supply