In the equation of exchange, if the money supply is $3 billion, the price level is 2, and the real GDP is $6 billion, the velocity is
A) 1.
B) 2.
C) 4.
D) 36.
C
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Diversification is most effective in reducing:
A) market risk B) systemic risk C) idiosyncratic risk D) all forms of risk
Blanca has her choice of either a certain income of $20,000 or a gamble with a 0.5 probability of $10,000 and a 0.5 probability of $30,000. The expected value of the gamble:
A) is less than $20,000. B) is $20,000. C) is greater than $20,000. D) cannot be determined with the information provided.
Other things remaining unchanged, the longer the time period under consideration, the greater will be the price elasticity of demand
a. True b. False Indicate whether the statement is true or false
Which of the following is an example of an adverse supply shock?
A) a nationwide drought lasting for many months B) an outbreak of war among several of the Middle Eastern oil-producing countries C) an influenza virus that affects 50 percent of the labor force over a two month period D) a, b, and c E) a and c