Multiple Choice
The money supply in Muckland is $100 billion. Nominal GDP is $800 billion and real GDP is $400 billion. What are the price level and velocity in Muckland?
A) The price level and velocity are both 8.
B) The price level is 2 and velocity is 8.
C) The price level and velocity are both 4.
D) The price level is 4 and velocity is 8.
Correct Answer:
Verified
Correct Answer:
Verified
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