GDP Is $2,000 Billion, the GDP Deflator Is 100 a Price

question 78

Multiple Choice

GDP is $2,000 billion, the GDP deflator is 100 a price level of 1) , and the velocity of circulation is 5.The quantity of money is

• A)$20 billion.
• B)$2,000 billion.
• C)$10,000 billion.
• D)$400 billion.
• E)$500 billion.

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Definitions:

Risk Premium

The extra return above the risk-free rate that investors demand for choosing to invest in a riskier asset.

Well-diversified Portfolio

An investment portfolio strategically crafted to include a variety of asset classes in order to minimize risk.

Regression Coefficient

A quantitative measure in statistics that represents the strength and direction of the relationship between a dependent variable and an independent variable in a regression analysis.

Single Factor Model

A model that explains the returns of an asset or portfolio using a single risk factor.