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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
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
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
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