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According to the Equation of Exchange,if Real GDP Is $2

Question 6

Multiple Choice

According to the equation of exchange,if real GDP is $2 trillion and the money supply is $0.5 trillion,the velocity of money:

A) must be 4.
B) must be 1/4.
C) must be 4 trillion.
D) must be 1/4 trillion.
E) cannot be determined unless we know the price level.

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