The price level is 3, total output is 500, and the money supply is 200. The velocity of money is
A) 7.5.
B) 2.5.
C) 2.0.
D) None of the above.

Name: The price level is 3, total output is 500, and the money supply is 200. The velocity of money is A) 7.5. B) 2.5. C) 2.0. D) None of the above.
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Question

Quizplus · Accepted Answer

The velocity of money is calculated using the formula V = (P * Y) / M, where P is the price level, Y is the total output, and M is the money supply. Substituting the given values, V = (3 * 500) / 200 = 7.5.

The Price Level Is 3, Total Output Is 500, and the Money