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:

Corrected Trial Balance

A list of all the account titles and balances of a company after adjustments and corrections have been made.

Normal Balance

The side (debit or credit) of an account that is typically increased, indicating its usual positive balance in accounting.

Account Type

Refers to classifications made for various financial transactions in accounting, such as assets, liabilities, equity, revenue, and expenses.

Debit And Credit Effects

The accounting actions that increase or decrease accounts in the double-entry bookkeeping system, where debits are entries on the left side and credits are entries on the right.