Solved

In a Small Economy, the Quantity of Money Circulating in the Economy

Question 189

Multiple Choice

In a small economy, the quantity of money circulating in the economy is $2.5 million. Real GDP for the current year is $5 million, and the average price level is 2. What is the velocity of money?


A) 4
B) 2
C) 2.5
D) 5

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q26: Inflation is an increase in the:<br>A) value

Q75: Hungary holds the world record for the

Q96: According to the quantity theory of money,the

Q100: Suppose you are forced to take a

Q152: Inflation can reduce the real return that

Q185: Deflation is:<br>A) the average number of times

Q186: Unanticipated high inflation always means:<br>A) a loss

Q188: The average rate of inflation in the

Q192: If your older brother paid $27,000 for

Q194: Current forecasts say that mild inflation is