If the velocity of money is 5 and money supply is $10 trillion, then nominal GDP is _____
A) $10 trillion.
B) $50 trillion.
C) $100 trillion.
D) $200 trillion.
E) $500 trillion.

Question

Quizplus · Accepted Answer

Nominal GDP is calculated using the formula: Nominal GDP = Money Supply x Velocity of Money. Plugging in the values given, we get Nominal GDP = $10 trillion x 5 = $50 trillion. Therefore, the correct answer is choice B.

If the Velocity of Money Is 5 and Money Supply