M2 is $8 trillion and nominal GDP is about $14.2 trillion.What is the velocity of money?
A)1.8
B)8.0
C)112
D)We cannot compute it without knowing real GDP

Name: M2 is $8 trillion and nominal GDP is about $14.2 trillion.What is the velocity of money? A)1.8 B)8.0 C)112 D)We cannot compute it without knowing real GDP
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Quizplus · Accepted Answer

The velocity of money is calculated by dividing nominal GDP by the money supply (M2). So, $14.2 trillion / $8 trillion = 1.775, which rounds to 1.8.

M2 Is $8 Trillion and Nominal GDP Is About $14