If the velocity of circulation is 6 and the quantity of money is $3 trillion, what is nominal GDP?
A) $18 trillion
B) $6 trillion
C) $3 trillion
D) $333 billion

Question

Quizplus · Accepted Answer

Nominal GDP can be calculated using the formula: Nominal GDP = Money Supply * Velocity of Money. Here, the money supply is $3 trillion and the velocity of circulation is 6. Therefore, Nominal GDP = $3 trillion * 6 = $18 trillion.

If the Velocity of Circulation Is 6 and the Quantity