If the Stock of Money Is $250 Billion, Velocity Is

question 158

Multiple Choice

If the stock of money is $250 billion, velocity is 5, and the price level is 10, what is real output?

• A) $5 billion
• B) $125 billion
• C) $500 billion
• D) $12,500 billion

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Definitions:

Single Rate

A fixed interest rate that remains constant throughout the term of the loan or investment.

Discount

A reduction applied to the regular price of goods or services, usually offered to encourage purchase or reward customers.

Series

A sequence of numbers or terms that follow a specific pattern.

Outstanding Balance

Outstanding balance refers to the amount of money that is still owed on a loan or credit account at any given time.