Multiple Choice
If an economy has a velocity of circulation of 3, then
A) in a year the average dollar is exchanged 3 times to purchase goods and services in GDP.
B) nominal GDP is 1/3 the size of the quantity of money.
C) the quantity of money is $3 for every dollar of GDP.
D) the quantity of money is 3 times real GDP.
Correct Answer:
Verified
Correct Answer:
Verified
Q291: "Even though we can convert them into
Q384: If the money multiplier is 3.5,a $10
Q447: "When the Fed buys securities from a
Q466: Which of the following is a service
Q468: The majority of money is created when<br>A)
Q470: The monetary base consists of<br>A) the quantity
Q472: When the velocity of circulation equals 4
Q473: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6802/.jpg" alt=" -In the figure
Q474: The opportunity cost of holding money refers
Q476: The Fed buys securities and gives the