If the quantity of money is $4 trillion and nominal GDP is $8 trillion, velocity is
A) 0.5.
B) 2.
C) $32 trillion.
D) not computable unless the value of the price level is given.
Correct Answer:
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Q5: The volume of transactions is
A)greater than GDP,
Q6: The velocity of money represents
A)the total number
Q7: A key problem with the basic quantity
Q8: If nominal money balances increase from $2
Q9: If on average a dollar is spent
Q11: Since 1965, the price level in the
Q12: The premise of the quantity theory of
Q13: People use money primarily
A)to carry out transactions.
B)as
Q14: If the quantity of money is $1
Q15: Real money balances equal
A)MP.
B)M/P.
C)P/M.
D)nominal money balances.
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