the economics of money, banking, and financial markets

641 $

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9. 
   

   If nominal GDP is $8 trillion, and the money supply is $2 trillion, velocity is ____.
   A) 0.25
   B) 4
   C) 8
   D) 16
   Answer: B
   Diff: 2 Type: MC Page Ref: 526
   Skill: Applied
   Objective List: 21.1 Describe how the demand for money is determined

   
   


10. 
    

    If nominal GDP is $10 trillion, and velocity is 10, the money supply is ____.
    A) $1 trillion
    B) $5 trillion
    C) $10 trillion
    D) $100 trillion
    Answer: A
    Diff: 2 Type: MC Page Ref: 526
    Skill: Applied
    Objective List: 21.1 Describe how the demand for money is determined

    
    


11. 
    

    If the money supply is $20 trillion and velocity is 2, then nominal GDP is ____.
    A) $2 trillion
    B) $10 trillion
    C) $20 trillion
    D) $40 trillion
    Answer: D
    Diff: 2 Type: MC Page Ref: 526
    Skill: Applied
    Objective List: 21.1 Describe how the demand for money is determined

    
    


12. 
    

    Velocity is defined as ____.
    A) P + M + Y
    B) (P × M)/Y
    C) (Y × M)/P
    D) (P × Y)/M
    Answer: D
    Diff: 2 Type: MC Page Ref: 526
    Skill: Recall
    Objective List: 21.1 Describe how the demand for money is determined