If Nominal GDP = $15 Trillion and the Quantity of Money

question 295

Multiple Choice

If nominal GDP = $15 trillion and the quantity of money is $3 trillion, what is velocity?

• A) 5
• B) 16
• C) 2
• D) 8

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Definitions:

Indorser

A person who signs a document, typically a check or negotiable instrument, indicating their agreement or approval.

Accommodation Indorser

A party who endorses a negotiable instrument for the purpose of lending their credit to another party without direct benefit.

Contractual Liability

Contractual liability involves obligations that a party has agreed to assume in a contract, making them legally responsible for fulfilling the terms of the agreement.

Transfer Warranty

A guarantee in legal documents, especially in sales of goods, assuring the recipient that the transferor has valid title and that the transfer is rightful.