If an economy produces 2,000 units of output with a price level of $1 and the money supply (M) is $1,000, velocity is:
A. 2.
B. 500.
C. 50.
D. 5.
A. 2.
You might also like to view...
A simultaneous increase in both the demand for computers and the supply of computers must increase
a. the number of computers bought and sold. b. the price of computers. c. both the equilibrium price and quantity of computers. d. the shortage of computers in the market.
Inflation was a problem during the Great Depression
Indicate whether the statement is true or false
Membership in the Federal Reserve System is
a. limited to national banks. b. limited to state banks. c. required of national banks and open to state banks. d. forbidden to state banks.
Engel's law suggests that the demand for food is
a. income inelastic b. income elastic c. price inelastic d. price elastic e. highly correlated with population size