Suppose nominal GDP equaled $10,988 billion while the M2 money supply was $6,063 billion. What was the velocity of the M2 money stock?
A) 0.45
B) 0.55
C) 1.81
D) 2.36

Name: Suppose nominal GDP equaled $10,988 billion while the M2 money supply was $6,063 billion. What was the velocity of the M2 money stock? A) 0.45 B) 0.55 C) 1.81 D) 2.36
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Question

Quizplus · Accepted Answer

Velocity of money can be calculated using the equation: velocity = nominal GDP / M2 money supply. Plugging in the given values: velocity = 10,988 / 6,063 = 1.81.

Suppose Nominal GDP Equaled $10,988 Billion While the M2 Money