Suppose that M = 300, P = 150, and Y = 6. Then the velocity of circulation equals
A) 3.00.
B) 0.02.
C) 2.00.
D) 0.50.

Name: Suppose that M = 300, P = 150, and Y = 6. Then the velocity of circulation equals A) 3.00. B) 0.02. C) 2.00. D) 0.50.
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Quizplus · Accepted Answer

The velocity of circulation is calculated as V = M / P * Y, where M is the money supply, P is the price level, and Y is real GDP. In this case, V = 300 / 150 * 6 = 3.00.

Suppose That M = 300, P = 150, and Y