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If the Amount of Money in Circulation Is $8 Billion

Question 123

Multiple Choice

If the amount of money in circulation is $8 billion and the value of total output is $40 billion in an economy, then the:

A) Velocity of money is 5
B) Money supply is $40 billion
C) Level of the price index is 320
D) Equilibrium level of GDP is $320 billion

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