If Income Velocity Is Assumed to Be Constant, but No

question 45

Multiple Choice

If income velocity is assumed to be constant, but no other assumptions are made, the level of _____ is determined by M.

• A)prices
• B)real GDP
• C)transactions
• D)nominal GDP

---

Definitions:

Liquidating Dividend

A type of payment made by a corporation to its shareholders during its liquidation or dissolution, often representing the return of capital rather than profit.

Special Dividend

A one-time payment made by a company to its shareholders, often issued in response to exceptionally strong earnings or when a large amount of excess cash is on hand.