If the nominal GDP is $500 billion and the money supply is $100 billion, the velocity of money is:
a. 500.
b. 5.00
c. 2.50.
d. 0.40.
b
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In the Unites States, the Gini coefficient was .403 in 1980 and .469 in 2010 . What information on income distribution can be derived from this data?
A high-wage country cannot afford free trade with a low-wage country. The high- wage country will either be undersold or its workers will be forced to accept lower living standards
a. True b. False
If the demand for money depends on the interest rate, then a ________ in the money supply will increase nominal GDP by ________.
A. 5% decrease; more than 5% B. 5% increase; less than 5% C. 5% decrease; exactly 5% D. 5% increase; more than 5%
More cattle are found to have mad cow disease. As a result, consumer confidence in the safety of beef is shaken. What would an economist predict will happen in the beef market?
A. The demand curve will shift to the left. B. absolutely no change in either the quantity demand or the demand for beef C. As consumer preferences move away from beef, there is an upward movement along the beef demand curve. D. The demand curve does not shift but consumers move to a point lower down the curve.