If Nominal GDP Is $5,000 Billion and the Velocity of the M2

question 28

Multiple Choice

If nominal GDP is $5,000 billion and the velocity of the M2 money supply is 5, what is the amount of the public's holding in the form of M2?

• A) $500 billion
• B) $1,000 billion
• C) $1,500 billion
• D) $2,000 billion

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Definitions:

Object Relations Theory

A psychoanalytic theory focusing on relationships with others, asserting that the ego and personality are shaped by early family ties and dynamics.

Social Learning Theory

Social learning theory contends that people learn new behaviors and attitudes through observation, imitation, and modeling of others within a social context.

Psychoanalytic Theory

A set of theories originating with Sigmund Freud that emphasizes unconscious psychological processes and contends that childhood experiences significantly influence adult personality and behavior.

Symbolic Interaction Theory

A theoretical perspective claiming that people act toward things because of the meaning things have for them.