Scenario: the Velocity Equation Suppose That Real GDP Equals $10

question 136

Multiple Choice

Scenario: The Velocity Equation Suppose that real GDP equals $10 trillion, nominal GDP equals $20 trillion, and the aggregate price level equals 2. If the velocity of money is 2, the money supply is:

• A) $20 trillion.
• B) $10 trillion.
• C) $5 trillion.
• D) $40 trillion.

---

Definitions:

Ontario Securities Commission

The regulatory body responsible for overseeing the capital markets in Ontario, Canada.

Securities Sale

The process of selling financial instruments such as stocks, bonds, or options in a financial market.

Corporate Nature

The inherent characteristics that define a corporation, such as limited liability, perpetual existence, and the ability to enter into contracts.

Letters Patent Corporations

Official government documents that grant a corporation the rights and privileges to operate as a legal entity.