If on average a dollar is spent five times each year to purchase goods and services in the economy, then
A) the value of velocity must be 0.2.
B) the value of velocity must be 5.
C) the value of nominal GDP divided by the money supply must be 0.2.
D) the value of the money supply divided by nominal GDP must be 5.
Correct Answer:
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Q4: If nothing else changes, a higher price
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
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
Q14: If the quantity of money is $1
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