If nominal GDP is $5 billion and velocity is 10,then

Name: If nominal GDP is $5 billion and velocity is 10,then
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Quizplus · Accepted Answer

By definition, velocity of money is the number of times a unit of currency is used to purchase goods and services within a year. Therefore, we can calculate the money supply as follows: 
Money Supply = Nominal GDP / Velocity 
= $5 billion / 10 
= $500 million 
Therefore, actual money balances held by the nonbank public equal $500 million.

If Nominal GDP Is $5 Billion and Velocity Is 10,then