If an economy has a velocity of circulation of 3, then
A) nominal GDP is 1/3 the size of the quantity of money.
B) the quantity of money is $3 for every dollar of GDP.
C) the quantity of money is 3 times real GDP.
D) in a year the average dollar is exchanged 3 times to purchase the goods and services that make up GDP.
Correct Answer:
Verified
Q23: Which of the following affects the amount
Q24: The equation of exchange becomes the same
Q25: The Australian historical evidence
A)shows that a higher
Q26: The quantity of money in an economy
Q27: All the following statements about the Reserve
Q29: Financial innovations can have the effect of
A)only
Q30: If you use $500 of currency to
Q31: The fraction of a bank's total deposits
Q32: The quantity theory asserts that real GDP
Q33: The monetary base is the sum of
A)coins,
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