Figure 30-3 on the Following Graph, MS Represents the Money Supply and Supply

question 141

Multiple Choice

Figure 30-3
On the following graph, MS represents the money supply and MD represents money demand.
-Refer to Figure 30-3. Suppose the relevant money-supply curve is the one labeled MS₂; also suppose the economy's real GDP is 65,000 for the year. If the market for money is in equilibrium, then the velocity of money is approximately

• A)2.0.
• B)14.3.
• C)2.9.
• D)0.35.

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