If Real GDP Is $9,600 Billion and Nominal Money Supply

question 21

Multiple Choice

If real GDP is $9,600 billion and nominal money supply is $1,200 billion, then

• A)the income velocity of money is 8.0
• B)the price level is 8.0
• C)the income velocity of money is 1.25
• D)the price level is 1.25
• E)none of the above

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Definitions:

Foreign Market

Markets outside the domestic boundaries of a company where it conducts or aims to conduct business.

Meganational Companies

Large corporations that operate in multiple countries around the world, often exerting significant economic and political influence.

Local Human Capital

The accumulated knowledge, skills, and experience possessed by the workforce within a specific locale, region, or community.

Subsidiary Human Capital

The skills, knowledge, and experience possessed by employees of a subsidiary, which contribute to its value and performance.