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

question 98

Multiple Choice

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

• A) 8
• B) 5
• C) 16
• D) 2

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Definitions:

Payout

The process of distributing funds by foundations and trusts to meet legal requirements or fulfill their mission.

Accrual Basis

An accounting method where revenue and expenses are recorded when earned or incurred, regardless of when cash transactions occur.

Expenditures

The action of spending funds or an amount of money spent on a particular purpose, product, or service.

Long-Term Solvency

The ability of an organization or business to meet its long-term financial obligations and continue operations into the future.