If Nominal GDP Is $4,000 Billion and the Amount of Money

question 198

Multiple Choice

If nominal GDP is $4,000 billion and the amount of money demanded for transactions purposes is $800 billion, it can generally be concluded that

• A)the asset demand for money is $3,200 billion.
• B)the total demand for money is $4,800 billion.
• C)on average, each dollar will be spent five times a year.
• D)the supply of money needs to be increased to meet the demand.