When the Velocity of Circulation Equals 4 in 2010, This

question 472

Multiple Choice

When the velocity of circulation equals 4 in 2010, this fact means that

• A) for each additional dollar of money injected into the economy, the price level rose 4 percent in 2010.
• B) real output of goods and services in GDP rose by four dollars for each additional dollar of money consumers saved.
• C) on average, each dollar of money in the economy purchased four dollars of goods and services in GDP in 2010.
• D) consumers held four dollars in wealth for each dollar they spent in 2010.

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Definitions:

Natural Phenomenon

Events or observations in the physical world that occur without human intervention, often described by the laws of nature.

Theoretical Approach

A systematic way of considering an issue, phenomenon, or problem, drawing from a set of principles and hypotheses.

Deviant Behavior

Actions that deviate from the societal norms and values.

Theoretical Approach

A systematic way of understanding phenomena, often based on a set of principles and concepts that guide analysis and explanation.