The velocity of money is 4. If nominal GDP is $1,200 billion then the stock of money
A. is $300 billion.
B. is $400 billion.
C. is $500 billion.
D. is $4,800 billion.
Answer: A
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Suppose, at its present rate of output, a perfectly competitive firm's marginal revenue exceeds both its marginal cost and its average variable cost. To maximize profit, the firm should
a. lower the price b. raise the price c. increase output d. reduce output e. maintain its current rate of output
The extra Marginal Utility that winning an extra dollar in prize money from a gamble provides is assumed to ____________ as more dollars are won.
Fill in the blank(s) with the appropriate word(s).
One way the government can boost the economy out of a recession is:
A. with public announcements telling the public to save their money. B. by increasing government spending. C. by setting price ceilings on most goods so people can afford them. D. None of these will help an economy in recession.
State (a) a positive economic statement of your choice, and then (b) a normative economic statement relating to your first statement.