Suppose the public holds $200 billion in M2 and the velocity of the M2 money supply is 5. What is the value of nominal GDP?
A) $500.
B) $1,000.
C) $1,500.
D) That information cannot be determined.
Ans: B) $1,000.
Economics
You might also like to view...
If real GDP grows by 3 percent, the velocity of circulation does not change, and the quantity of money grows by 3 percent, then in the long run the inflation rate is
A) 0 percent. B) 6 percent. C) -3 percent. D) -6 percent. E) 3 percent.
Economics
Which industry or sector of the economy would least likely be affected by the business cycle?
A. Automobiles B. Capital goods C. Services D. Consumer durables
Economics