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According to the Equation of Exchange,if Nominal GDP Equals $6

Question 90

Multiple Choice

According to the equation of exchange,if nominal GDP equals $6 trillion and the money supply equals $1 trillion,the velocity of money:


A) must be 6.
B) must be 1/6.
C) must be 6 trillion.
D) must be 1/6 trillion.
E) cannot be determined unless we know the price level.

Correct Answer:

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