What is the velocity of money?
A) The rate at which GDP increases in a year
B) The speed of capital accumulation
C) The rate at which money circulates through an economy
D) The rate at which the Federal Reserve increases or decreases the money supply
E) The rate at which the aggregate price level increases
Answer: C) The rate at which money circulates through an economy
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Bolivia's government attempted to solve some of its problems with inequality of outcomes due to foreign investment in its natural gas resources by:
a. taxing international firms. b. insisting that the firms pay higher wages to workers in the industry. c. shutting down the firms in the wake of protests. d. nationalizing the firms by reclaiming 51% ownership and raising taxes on foreign profits.
Refer to Table 8-7. Suppose that a simple economy produces only four goods and services: iPods, t-shirts, bottled water, and oranges. Calculate nominal GDP for this simple economy
What will be an ideal response?