Using the Equation of Exchange, If the Money Supply Is

question 250

Multiple Choice

Using the equation of exchange, if the money supply is $4 trillion, the price level is 2, and the level of output (real GDP) is $6 trillion, then the velocity of money is

• A) 1.33.
• B) 2.
• C) 3.
• D) 12.

---

Definitions:

Egocentrism

The inability to differentiate between one's own perspective and another person's viewpoint.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or otherwise sensed, a concept typically developed during infancy.

Self-Control

The ability to regulate one's emotions, thoughts, and behaviors in the face of temptations and impulses.

Verbal Tool

Language used as a means to communicate, express ideas, or convey messages effectively.