If Nominal GDP Is $12 Trillion and the Money Supply

question 107

Multiple Choice

If nominal GDP is $12 trillion and the money supply is $8 trillion, then the velocity of money is

• A) 0.667.
• B) 1.5.
• C) 4.
• D) 8.

---

Definitions:

Credit Postings

Entries made on the credit side of an account, indicating an increase in liabilities, revenue, or equity and a decrease in assets.

Debit Postings

Entries made on the left side of a ledger account, indicating an increase in assets or expenses or a decrease in liabilities, equity, or revenue.

Account Balance

An account balance refers to the amount of money held in a financial repository, typically a bank account, at any given moment.

Painting Equipment

Assets used in the operation of a painting business or for painting activities, classified as long-term if they provide benefits over multiple periods.