If the Amount of Money in Circulation Is $180 Billion

question 74

Multiple Choice

If the amount of money in circulation is $180 billion and the value of the economy's total output is $540 billion, then the

• A)circulation period of money must be one-fourth of a year.
• B)velocity of money is 4.
• C)average price per final good sold is $3.
• D)velocity of money is 3.

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Definitions:

Recouping

The act of recovering money spent or lost through subsequent earnings or savings.

Brand Extension

The strategy of using an existing brand name to launch a new or modified product in a different category, leveraging the brand's equity.

Reese's Peanut Butter

A popular brand known for its peanut butter cups, combining chocolate and peanut butter in a unique confectionery.

Manufacture

The process of making products on a large scale using machinery, often involving the assembly of components or raw materials.