Suppose the Public Holds $200 Billion in M2 and the Velocity

question 53

Multiple Choice

Suppose the public holds $200 billion in M2 and the velocity of the M2 money supply is 5. What is the value of nominal GDP?

• A) $500.
• B) $1,000.
• C) $1,500.
• D) That information cannot be determined.

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