If on Average a Dollar Is Spent Five Times Each

question 71

Multiple Choice

If on average a dollar is spent five times each year to purchase goods and services in the economy, then

• A)the value of velocity must be 0.2.
• B)the value of velocity must be 5.
• C)the value of nominal GDP divided by the money supply must be 0.2.
• D)the value of the money supply divided by nominal GDP must be 5.

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Definitions:

Population

The whole number of inhabitants or residents in a particular area or region, often studied in terms of size, density, and distribution.

Subset

A portion or part of a larger group or set that contains some but not all of its elements.

Meta-analysis

A statistical technique that combines the results of multiple scientific studies to derive a more precise estimate of the effect of an intervention or treatment.

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