According to the Equation of Exchange,if Nominal GDP Equals $6

question 90

Multiple Choice

According to the equation of exchange,if nominal GDP equals $6 trillion and the money supply equals $1 trillion,the velocity of money:

• A)must be 6.
• B)must be 1/6.
• C)must be 6 trillion.
• D)must be 1/6 trillion.
• E)cannot be determined unless we know the price level.

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Definitions:

Marketable Discharge Permits

Permits that allow holders to emit a certain amount of pollutants into the environment, which can be bought, sold, or traded, creating an economic incentive for reducing emissions.

Mercury Discharge

The release or emission of mercury, a toxic heavy metal, into the environment, often from industrial sources.

National Environmental Policy Act

A law enacted to ensure that the government gives proper consideration to the environmental impact of major federal actions that could significantly affect the environment.

Council on Environmental Quality

A federal agency within the Executive Office of the President that advises on environmental policies and strategies.