If the Amount of Money in Circulation Is $8 Billion

question 174

Multiple Choice

If the amount of money in circulation is $8 billion and the value of total output is $40 billion in an economy, then the

• A) velocity of money is 5.
• B) money supply is $40 billion.
• C) level of the price index is 320.
• D) equilibrium level of GDP is $320 billion.

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Definitions:

Commission Calculation

The process of determining the fee paid to a salesperson or agent for services rendered, typically a percentage of the sale price.

Linear Equation

A mathematical equation consisting of terms that are either constants or products of a constant multiplied by a single variable.

Linear Equations

Mathematical statements that show the relationship between two variables using a straight line when plotted on a graph.

Linear Equation

An algebraic equation in which each term is either a constant or the product of a constant and a single variable.