If an Economy Has a Velocity of Circulation of 3

question 253

Multiple Choice

If an economy has a velocity of circulation of 3, then

• A) the quantity of money is 3 times real GDP.
• B) in a year the average dollar is exchanged 3 times to purchase goods and services in GDP.
• C) nominal GDP is 1/3 the size of the quantity of money.
• D) the quantity of money is $3 for every dollar of GDP.

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Definitions:

Risk-Free Rate of Return

The theoretical rate of return of an investment with zero risk, often represented by the yield on government bonds.

Hyperpolarization

Increase in the charge difference across the plasma membrane; causes the charge difference to move away from 0 mV.

Hypopolarization

Change in the electric charge difference across the plasma membrane that causes the charge difference to be smaller or move closer to 0 mV.

Extracellular

Located or occurring outside a cell or cells.