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Scenario: the Velocity Equation Suppose That Real GDP Equals $10

Question 136

Multiple Choice

Scenario: The Velocity Equation Suppose that real GDP equals $10 trillion, nominal GDP equals $20 trillion, and the aggregate price level equals 2. If the velocity of money is 2, the money supply is:


A) $20 trillion.
B) $10 trillion.
C) $5 trillion.
D) $40 trillion.

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