If Nominal GDP Equals $10 Trillion and the Velocity of Circulation

question 165

Multiple Choice

If nominal GDP equals $10 trillion and the velocity of circulation is 5, then

• A) the quantity of money is $2 trillion.
• B) the quantity of money is $50 trillion.
• C) the real value of the quantity of money is $10 trillion.
• D) real GDP is $2 trillion.

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Definitions:

Short-term Memory

The skill to retain a slight quantity of information in an instantly available status for a short span of time.

Elaborative Rehearsal

Elaborative Rehearsal is a method of memory consolidation in which information is related to existing knowledge or deeply analyzed to facilitate long-term storage.

Long-term Memory

A type of storage in the brain capable of holding information for long periods, sometimes indefinitely.

Short-term Memory

The capacity for holding, but not manipulating, a small amount of information in mind in an active, readily accessible state for a short period of time.