If the money supply is 500 and velocity is 6, then nominal GDP:
A. is 500.
B. is 83.33.
C. is 3,000.
D. cannot be determined.
Answer: C
You might also like to view...
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
Barbara is willing to loan $10,000 if she can earn a real interest rate of 6 percent. Everything else the same, if the inflation rate is 2 percent, she would agree to loan the $10,000 if the nominal interest rate is
A) 3 percent. B) 10 percent. C) 4 percent. D) 12 percent. E) 8 percent.
In the foreign exchange market, the demand for dollars increases and the demand curve for dollars shifts rightward if the
A) U.S. interest rate differential increases. B) foreign interest rate rises. C) exchange rate falls. D) expected future exchange rate falls. E) U.S. interest rate falls.
The U.S. and the Canadian currencies are the only two in the world that are called "dollars."
Indicate whether the statement is true or false