If the amount of money in circulation is $50 billion and the nominal GDP is $200 billion, the velocity of money is
A) 0.25
B) 0.75.
C) 2.
D) 4.

Name: If the amount of money in circulation is $50 billion and the nominal GDP is $200 billion, the velocity of money is A) 0.25 B) 0.75. C) 2. D) 4.
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Question

Quizplus · Accepted Answer

The velocity of money is calculated by dividing the nominal GDP by the money supply. Here, $200 billion / $50 billion = 4.

If the Amount of Money in Circulation Is $50 Billion