Suppose an economy's money supply is fixed at $4,000 and its nominal GDP is $800,000. Calculate the velocity of money
What will be an ideal response?
According to the quantity theory of money, the velocity of money is obtained by dividing nominal GDP by money supply. In this case, the velocity of money is $800,000/$4,000 = 50.
Economics
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Noncontrollable expenditures are called "noncontrollable" because
A) they increase at the same rate as the public debt. B) they change without congressional action. C) only the president can approve these entitlement payments. D) the political process determines the size of the payments.
Economics
Figure 1-1
The slope of the line in Figure 1-1 is
A. 0.5. B. 2.0. C. ?0.5. D. ?2.0.
Economics