If the quantity of money is $1 trillion and real GDP is $4 trillion, velocity is
A) 0.25.
B) 4.
C) $4 trillion.
D) not computable unless the value of the price level is given.
Correct Answer:
Verified
Q9: If on average a dollar is spent
Q10: If the quantity of money is $4
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
Q15: Real money balances equal
A)MP.
B)M/P.
C)P/M.
D)nominal money balances.
Q16: If nominal money balances increase from $2
Q17: In order to buy in 2006 a
Q18: In developing early theories about money demand,
Q19: The demand for money for transactions is
A)independent
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