If a nation's nominal Gross Domestic Product (GDP) is $20 billion, its money supply is $8 billion, and its price level is 2, then the velocity of money is
A. 10.
B. 2.5.
C. 2.
D. 16.
Answer: B
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In the above figure, the economy is currently at point A. Suppose that the money wage rate and the price level both fall by 10 percent. Firms will be willing to supply output equal to
A) less than $16.0 trillion. B) $16.0 trillion. C) more than $16.0 trillion. D) Without more information, it is impossible to determine which of the above answers is correct.
If, when a firm doubles all its inputs, its average cost of production increases, then production displays
A) economies of scale. B) diminishing returns. C) diseconomies of scale. D) declining fixed costs.
The market for used cars is not considered perfectly competitive because:
A. there is complete information. B. the buyers are not price takers. C. the good is standardized. D. there are always very low transaction costs.
A large number of businesses are organized as sole proprietorships because it is easy for them to acquire large sums of financing
a. True b. False