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Suppose a Country Has a Velocity of Money Equal to 12

Question 79

Multiple Choice

Suppose a country has a velocity of money equal to 12 and nominal GDP of $30 billion.This means that each dollar in this economy is supporting approximately:


A) $10 in total income.
B) $30 in total income.
C) $1.5 in total income.
D) $12 in total income.

Correct Answer:

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