If the money supply is $250 billion and nominal GDP is $1 trillion, the velocity of money is:
A) 0.25.
B) 0.40.
C) 2.50.
D) 4.00.

Name: If the money supply is $250 billion and nominal GDP is $1 trillion, the velocity of money is: A) 0.25. B) 0.40. C) 2.50. D) 4.00.
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Question

Quizplus · Accepted Answer

The velocity of money is calculated as nominal GDP divided by the money supply, which is $1 trillion / $250 billion = 4. Therefore, the correct answer is D) 4.00.

If the Money Supply Is $250 Billion and Nominal GDP