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Question 20

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Use the following to answer questions :
Scenario: The Velocity Equation
Suppose that real GDP equals $10 trillion, nominal GDP equals $20 trillion, and the aggregate price level equals 2.
-(Scenario: The Velocity Equation) Look at the scenario The Velocity Equation. If the velocity of money is 2, the money supply is:


A) $20 trillion.
B) $10 trillion.
C) $5 trillion.
D) $40 trillion.

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