If the Velocity of Money Is 6 and the Money

question 108

Multiple Choice

If the velocity of money is 6 and the money supply is $4 trillion, then nominal GDP is

• A) $24 trillion.
• B) $2 trillion.
• C) $1.5 trillion.
• D) $0.667 trillion.

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Definitions:

Income Ladder

A metaphorical representation of the distribution of income across individuals or households in a society, indicating levels of wealth or poverty.

Quintile

A statistical value that divides a group of data into five equal parts, each containing 20% of the population.

Transfer Payment

Payments made by governments to individuals without any goods or services being exchanged, such as social security benefits.

Social Security

A government program that provides monetary assistance to people with an inadequate or no income.