The velocity of money is 3. If nominal GDP is $1,500 billion then the money supply is:
A) $500 billion.
B) $300 billion.
C) $4,800 billion.
D) $400 billion.

Name: The velocity of money is 3. If nominal GDP is $1,500 billion then the money supply is: A) $500 billion. B) $300 billion. C) $4,800 billion. D) $400 billion.
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Question

Quizplus · Accepted Answer

The velocity of money (V) is calculated as V = Nominal GDP / Money Supply. Given V = 3 and Nominal GDP = $1,500 billion, the Money Supply = $1,500 billion / 3 = $500 billion.

The Velocity of Money Is 3