In 2008, nominal GDP was equal to $14,265 billion while the M1 money supply was $1,423 billion. What was the velocity of the M1 money stock?
A) 1.0
B) 10.0
C) 1.8
D) 0.1

Name: In 2008, nominal GDP was equal to $14,265 billion while the M1 money supply was $1,423 billion. What was the velocity of the M1 money stock? A) 1.0 B) 10.0 C) 1.8 D) 0.1
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Question

Quizplus · Accepted Answer

The velocity of money is calculated as nominal GDP divided by the money supply. So, $14,265 billion / $1,423 billion = 10.0.

In 2008, Nominal GDP Was Equal to $14,265 Billion While