Suppose That the Nominal Quantity of Money Is $200 Billion

question 509

Multiple Choice

Suppose that the nominal quantity of money is $200 billion and the value of nominal GDP is $1 trillion. It must be the case that

• A) there will be a shortage of money balances in the economy.
• B) the economy is suffering from inflation.
• C) the average price paid for a ʺtypicalʺ good is $5.
• D) the velocity of circulation is 5.

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Definitions:

Corporate Strategy

The approach and actions a company takes to achieve its business goals and to secure a competitive position in the market.

IT Steering Committee

A group of senior executives who provide direction, guidance, and oversight for an organization's IT strategies, policies, and investments.

Top-Level IT Managers

Senior executives responsible for overseeing the information technology strategies and operations within an organization.

Functional Area Managers

Managers responsible for specific departments within a company, such as sales, marketing, or finance, focusing on specialized tasks and strategies.