Using the Equation of Exchange, If the Nominal GDP Is

question 130

Multiple Choice

Using the equation of exchange, if the nominal GDP is $8,000 billion and the money supply is $1,600 billion, then

• A) the price level is 5.0.
• B) the price level is 0.2.
• C) velocity is 5.0.
• D) velocity is 0.2.

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Definitions:

Car Buyer

An individual or entity that purchases a vehicle for personal use, commercial use, or resale.

Principal Debtor's

Pertains to the main individual or entity obligated to repay a debt or loan.

Lack of Capacity

The legal inability of an individual or entity to engage in certain activities or enter into contracts due to age, mental state, or other disqualifications.

Surety

Surety is a financial guarantee provided by a third party, promising to pay a debt or perform an obligation if the primary party fails to do so.