If Nominal GDP = $15 Trillion and the Quantity of Money

question 181

Multiple Choice

If nominal GDP = $15 trillion and the quantity of money is $3 trillion, what is the velocity of circulation?

• A) 45
• B) 18
• C) 5
• D) 12

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Definitions:

Framing Error

A cognitive bias where the context or way in which information is presented affects decision-making or judgement.

Auction Fever

Auction fever describes the emotional excitability and competitive bidding that can lead individuals to pay more for items in auctions than they are worth or had intended to spend.

Satisficing

A decision-making strategy that aims for an acceptable or satisfactory solution, rather than the optimal one.

Overconfidence

A cognitive bias where an individual's subjective confidence in their judgments is greater than their objective accuracy.