Multiple Choice
Which of the following is false?
A) The money supply times velocity equals the price level times real GDP.
B) If individuals are writing lots of checks on their checking accounts and spending currency as fast as they receive it, velocity will tend to be high.
C) The magnitude of velocity does not depend on the definition of money that is used.
D) Velocity equals nominal GDP divided by the money supply.
Correct Answer:
Verified
Correct Answer:
Verified
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