If the Velocity of Money Is 2 and Nominal GDP

question 137

Multiple Choice

If the velocity of money is 2 and nominal GDP is $10 trillion, then the money supply is

• A) $0.2 trillion.
• B) $5 trillion.
• C) $8 trillion.
• D) $12 trillion.

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Definitions:

Democracy

A system of government where power is vested in the people, who rule either directly or through freely elected representatives.

Jackson

Refers to Andrew Jackson, the seventh President of the United States (1829–1837), known for his populist policies and the implementation of the Indian Removal Act.

Second Bank of the U.S.

The Second Bank of the U.S. was a federally authorized Hamiltonian national bank operational from 1816 to 1836. It was central to early disputes over federal power and economic policy in the United States.

Slavery in Texas

refers to the historical period when slavery was legally practiced and sanctioned within the state of Texas.