If Nominal GDP Is $800 Billion And, on Average, Each

question 377

Multiple Choice

If nominal GDP is $800 billion and, on average, each dollar is spent four times in the economy over a year, then the quantity of money demanded for transactions purposes will be

• A) $200 billion.
• B) $400 billion.
• C) $800 billion.
• D) $3,200 billion.

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Definitions:

Ownership Shares

Equity units in a company that represent a portion of the ownership, often conferring voting rights and a share in the profits.

Cash Investments

Placing money into opportunities expected to yield a financial return, utilizing cash or cash equivalents.

Professional Partnership

A form of business organization where two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Agreement.

Negligence

A failure to take reasonable care or to act with the expected level of diligence, leading to harm or damage.