If the income velocity of money were V = 2, then
A) the demand for money would be two times the level of income
B) money demand for transactions would be 1/2 of the level of income
C) the increase in money supply would always be two times the increase in real GDP
D) a money supply of $6.3 trillion could support a nominal GDP of $12.6 trillion
E) a money supply of $1.2 trillion could support real a GDP of $9.6 trillion
Correct Answer:
Verified
Q40: Money illusion occurs
A)only in the classical case
Q41: If nominal GDP is $10,400 billion, M1
Q42: Assume we know that the income velocity
Q43: According to the quantity theory of money,
Q44: Assume nominal money supply grows by 6%
Q45: If real GDP has grown at a
Q46: Which of the following assumptions is not
Q47: If real GDP is $9,600 billion, nominal
Q49: According to the quantity theory of money,
Q50: If real GDP is $9,600 billion and
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents