If an Economy Has a Velocity of Circulation of 3

question 19

Multiple Choice

If an economy has a velocity of circulation of 3, then

• A)nominal GDP is 1/3 the size of the quantity of money.
• B)the quantity of money is $3 for every dollar of GDP.
• C)the quantity of money is 3 times real GDP.
• D)in a year the average dollar is exchanged 3 times to purchase the goods and services that make up GDP.

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Definitions:

Protein

Large biomolecules composed of one or more long chains of amino acid residues, crucial for the structure, function, and regulation of the body's cells, tissues, and organs.

Amino Acids

Organic compounds that serve as the building blocks of proteins, containing both an amino group and a carboxyl group.

Building Blocks

Fundamental components or elements from which something larger is constructed, such as amino acids are for proteins.

Proteins

Large biomolecules or macromolecules consisting of one or more long chains of amino acid residues, crucial for biological processes.