Nominal GDP, PY, Is $7

question 550

Multiple Choice

Nominal GDP, PY, is $7.5 trillion. The quantity of money is $3 trillion. The velocity of circulation is

• A) 22.5.
• B) 3.
• C) 2.5.
• D) 10.5.

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Definitions:

Fed's Control

The range of monetary policy tools and measures the Federal Reserve (the central bank of the United States) uses to control the supply of money, aiming to influence economic conditions, particularly inflation and unemployment rates.

Money Supply

Pertains to the aggregate sum of funds—including cash, coins, and bank account balances—present within an economy at a given moment.

Store Of Value

An asset that can be saved, retrieved, and exchanged at a later time, ideally retaining its value over time.

Unit Of Account

A standard numerical monetary unit of measurement of the market value of goods, services, and other transactions.