If the Velocity of Circulation Was Equal to 4 in 2017

question 244

Multiple Choice

If the velocity of circulation was equal to 4 in 2017, it means that

• A) consumers held four dollars in wealth for each dollar they spent in 2017.
• B) on average, each dollar of money in the economy purchased four dollars of goods and services in GDP in 2017.
• C) for each additional dollar of money injected into the economy, the price level rose 4 percent in 2017.
• D) real output of goods and services in GDP rose by four dollars for each additional dollar of money consumers saved.

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Definitions:

Metric Micrometer

A precision measuring instrument that uses a calibrated screw widely used for precise measurement of small distances in the metric system.

Thimble

A small metal or plastic cap with a grooved edge used to protect the finger while pushing a needle through fabric in sewing; or, a fitting used in rope systems to protect the loop from wear.

Torquing

The process of applying a specific amount of twist or force to fasteners, such as bolts and nuts, to ensure they are properly secured.

Clamping Force

The force applied to hold two or more objects together, preventing movement or separation.