GDP Is $2,000 Billion,the Price Level Is 100,and the Velocity

question 20

Multiple Choice

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

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

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Definitions:

Effective Rate

The actual interest rate earned or paid on an investment or loan, taking into account the compounding of interest.

Quarterly Compounding

Interest calculation that occurs four times a year, effectively increasing the amount of interest accrued over time.

Effective Rate

The interest rate on a loan or financial product that reflects the compounding periods in a year, presenting a true annual rate of return.

Effective Rate

The interest rate for a loan or financial product recalculated from its nominal rate to represent an annual compound interest rate, paid in arrears.