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In an Economy Whose Real National Income Is £200 Million

Question 35

Multiple Choice

In an economy whose real national income is £200 million (measured in base- year prices) , whose velocity of circulation is 8 and where the price index in base- year prices is 2, the money supply must be


A) £40 million.
B) £12.5 million.
C) £800 million.
D) £20 million.
E) £50 million.

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