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According to the Equation of Exchange,if GDP Equals $12,000 Billion

Question 5

Multiple Choice

According to the equation of exchange,if GDP equals $12,000 billion and the money supply equals $3,000 billion,the velocity of money

A) must be 8.
B) must be 4.
C) must be 0.4 billion.
D) must be 450 billion.
E) cannot be determined without knowing what the price level is.

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