If Velocity = 5,the Price Level = 2,and the Real

question 47

Multiple Choice

If velocity = 5,the price level = 2,and the real value of output is 2,500,then the quantity of money is

• A)$250.
• B)$25,000.
• C)$1,000.
• D)$6,250.

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Definitions:

General Ledger

The primary accounting record of a company that uses double-entry bookkeeping, summarizing all transactions over a period.

Cash Receipts Journal

A dedicated accounting journal used to record all cash inflows or receipts of a business.

Purchases Journal

A record of transactions specifically used for tracking all purchases of goods and services on credit.

General Journal

A basic accounting ledger that records all transactions of a business in chronological order, providing a detailed account.