If Nominal GDP = $900 Billion and the Public Holds

question 19

Multiple Choice

If nominal GDP = $900 billion and the public holds $300 billion in M2, then the velocity of the M2 money supply is

• A) 1.
• B) 2.
• C) 3.
• D) 4.

---

Definitions:

Paper Check

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or to the order of a person named therein.

Midnight Deadline

A point in time specified as the end of a day or deadline, often used in the context of projects, assignments, or contracts to indicate the final moment something is due.

Forges

Workshops or places equipped with furnaces and tools for heating and shaping metal objects.

Reimburse

To pay back or compensate someone for expenses incurred or losses suffered.