If a dollar of money is used 5 times in transactions in an economy over the course of a year and the supply of money is $120 billion, what is the volume of total spending in the economy?
A) $5 billion
B) $600 billion
C) $240 billion
D) $20 billion
Correct Answer:
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Q2: The Fed eases policy when it
A)decreases both
Q3: Which of the following is an useful
Q4: When a central bank decreases money growth,
Q5: Which of the following is likely to
Q6: If the money supply is $300 billion,
Q7: People know that the Fed has the
Q8: When a central bank increases money growth,
Q9: If the velocity of money is 8.2,
Q10: The equation that says money times velocity
Q11: If velocity of money is 6, the
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