If real GDP is $10 trillion and the velocity of circulation is 2, the quantity of money
A) is $2 trillion.
B) is $5 trillion.
C) is $20 trillion.
D) cannot be determined from the information given.
D
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Compensating differences in wages, pay workers for:
A. differences in worker training and skills. B. differences in the nonmonetary characteristics of jobs. C. geographic immobility. D. discrimination in hiring and firing.
Refer to the above production possibilities curves. Curve (a) is the current curve for the economy. The movement from curve (a) to curve (b) suggests:
A. a movement from unemployment to full employment. B. a decline in the total output of this society. C. an improvement in consumer goods technology but not in capital goods technology. D. an improvement in capital goods technology but not in consumer goods technology.