The velocity of money is:
A. money supply divided by prices.
B. spending divided by output.
C. required monetary reserves divided by income.
D. nominal GDP divided by the money supply.
Answer: D
You might also like to view...
The purpose of antitrust legislation is
A) to reduce unemployment. B) to reduce the power of monopoly. C) to increase the power of monopoly. D) to maximize employment for a given price level.
In a perfectly competitive industry, the price of good A is $2 . If a firm in this industry decides to increase its price to $2.50, it will:
a. realize an increase in profit of $0.50 per unit output. b. be able to increase the quantity sold of good A. c. be unable to sell any quantity of good A that is produced. d. lose some of its customers in the market. e. experience a decrease in profit of $0.50 per unit output.