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Scenario: the Quantity Theory of Money Suppose That the Money

Question 81
Multiple Choice

Scenario: The Quantity Theory of Money Suppose that the money supply is equal to $10 billion and the velocity of money is 6. If the aggregate price level is 4, then the real GDP is: A) $60 billion. B) $30 billion. C) $20 billion. D) $15 billion.

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Q 82
Scenario: The Quantity Theory of Money Suppose that the money supply is equal to $10 billion and the velocity of money is 6. If the aggregate price level is 4, then the nominal GDP is: A) $15 billion. B) $60 billion. C) $20 billion. D) $10 billion.
Q 83
The velocity of money is equal to: A) nominal GDP divided by the money supply. B) real GDP divided by the aggregate price level. C) nominal wages divided by the aggregate price level. D) real GDP divided by the money supply.
Q 84
Milton Friedman's argument was that the Fed should follow a monetary policy rule so that the money supply would: A) grow at a slow and steady rate. B) remain constant. C) grow proportionally with the price level. D) grow at the same rate as the GDP growth rate.
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