Refer to the given market-for-money diagrams. If each dollar held for transactions is spent four times per year on the average, we can infer that the:
A. real GDP is $800.
B. nominal GDP is $800.
C. money supply must be $800.
D. nominal GDP is $1,200.
B. nominal GDP is $800.
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The functions of money are
A) medium of exchange, unit of account, and store of value. B) medium of exchange, the ability to buy goods and services, and the ability to pay off debts. C) medium of exchange, the ability to buy goods and services, and checking accounts. D) credit cards, checking accounts, currency, and coins. E) store of value, use as a barter mechanism, and unit of account.
Which of the following is a positive macroeconomics statement?
A) The central bank should increase the nation's money supply. B) The increase in the nation's money supply helped push the nation's unemployment rate down in the short run. C) Ford Motor Company's new advertising campaign ended up hurting General Motors' sales. D) The local government ought to spend more on recreational facilities.