Multiple Choice
Suppose that the nominal quantity of money is $200 billion and the value of nominal GDP is $1 trillion. It must be the case that
A) the economy is suffering from inflation.
B) the average price paid for a "typical" good is $5.
C) there will be a shortage of money balances in the economy.
D) the velocity of circulation is 5.
Correct Answer:
Verified
Correct Answer:
Verified
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