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

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

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

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