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:

Free-Black Communities

Social and economic enclaves formed by African Americans who were not enslaved, often found in Northern states and some Southern cities before the Civil War.

Racial Residential Segregation

Describes the practice of living in separate neighborhoods or areas based on racial or ethnic backgrounds, often as a result of historical policies, economic disparities, or social practices.

Black-Run Institutions

Organizations or establishments operated and managed primarily by people of African descent.

African Descent

Relating to people whose ancestors were native to the African continent, often used in the context of discussions on race and identity.