If an economy has a velocity of circulation of 3, then
A) nominal GDP is 1/3 the size of the quantity of money.
B) the quantity of money is $3 for every dollar of GDP.
C) the quantity of money is 3 times real GDP.
D) in a year the average dollar is exchanged 3 times to purchase goods and services in GDP.
Correct Answer:
Verified
Q426: The equation of exchange
A) cannot be used
Q427: The equation of exchange states that the
Q428: An increase in decreases the quantity of
Q429: The velocity of circulation is
A) constant.
B) the
Q430: The velocity of circulation is the
A) average
Q432: Suppose that M = 300, P =
Q433: In the quantity theory of money, the
Q434: If nominal GDP = $15 trillion and
Q435: If real GDP is $10 trillion, the
Q436: When macroeconomists say that the velocity of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents