Suppose the Public Holds $200 Billion in M2 and the Velocity

question 53

Multiple Choice

Suppose the public holds $200 billion in M2 and the velocity of the M2 money supply is 5. What is the value of nominal GDP?

• A) $500.
• B) $1,000.
• C) $1,500.
• D) That information cannot be determined.

---

Definitions:

Transcendent

Going beyond the limits of ordinary experience, this term refers to something that is above and beyond the material universe.

Immanent

Existing or operating within; inherent.

Concepts of God

Various notions and ideas around the divine or supreme being, encompassing attributes like omnipotence, omniscience, and benevolence.

Sigmund Freud

A neurologist from Austria who established psychoanalysis as a technique for addressing mental disorders through conversational interaction between the psychoanalyst and the patient.