If GDP is $5,000 billion and the velocity of the M2 money supply is 5, what is the amount of the public's holding in the form of M2?

A. $500
B. $2,000
C. $1,500
D. $1,000


Ans: D. $1,000

Economics

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Aggregate expenditure is the sum of

a. all types of spending by households and firms b. spending and savings by households c. spending by households and governments on final goods and services d. spending by households, government, firms, and foreigners on final goods and services e. all spending and saving by households, firms, and governments

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The ability of a government to fix its currency's exchange rate is limited by the size of its reserves

a. True b. False Indicate whether the statement is true or false

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Which of the following securities has the greatest risk?

a. commercial paper b. corporate bonds c. corporate common stocks d. U.S. Treasury bills e. state and local government bonds

Economics