Suppose that the stock of money is $150 billion and nominal GDP is $750 billion. The velocity of money is
A) 4.
B) 5.
C) 16.7.
D) 600.

Name: Suppose that the stock of money is $150 billion and nominal GDP is $750 billion. The velocity of money is A) 4. B) 5. C) 16.7. D) 600.
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Question

Quizplus · Accepted Answer

The velocity of money can be calculated as nominal GDP divided by the stock of money. So, in this case, velocity equals $750 billion/$150 billion, which simplifies to 5. Therefore, the answer is B.

Suppose That the Stock of Money Is $150 Billion and Nominal