Suppose that the stock of money is $250 billion and nominal GDP is $2,000 billion. The velocity of money is
A. 0.125.
B. 6.
C. 8.
D. 2,250.
Answer: C
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The figure above shows that the government provides a subsidy to the farmers of ________ million
A) $350 B) $1,050 C) $50 D) $100 E) $700
Life insurance companies are supervised and regulated by the
A) Federal Home Loan Bank Board. B) Securities and Exchange Commission. C) states in which they operate. D) Federal Reserve.
An extreme case in which a percentage change in price, no matter how large, results in zero change in quantity is called:
a. perfect inelasticity. b. perfect elasticity. c. strong elasticity. d. weak elasticity.
Being able to measure the behavior of the economy with statistics such as GDP
a. is useful only in the accounting sense. b. is all that is necessary in order for us to be able to understand macroeconomics. c. can be helpful in developing macroeconomic science, but is not useful for policy making. d. is a crucial step toward developing the science of macroeconomics.