If Nominal GDP Is $5,000 Billion and the Velocity of the M2

question 28

Multiple Choice

If nominal GDP is $5,000 billion and the velocity of the M2 money supply is 5, what is the amount of the public's holding in the form of M2?

• A) $500 billion
• B) $1,000 billion
• C) $1,500 billion
• D) $2,000 billion

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Definitions:

Denial

A psychological defense mechanism in which confrontation with a personal problem or with reality is avoided by denying the existence of the problem or reality.

Displacement

A defense mechanism where an individual redirects a negative emotion from its original source to a safer target.

Sigmund Freud

A seminal figure in psychology, known for founding psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Anger

A strong feeling of annoyance, displeasure, or hostility towards someone or something considered to have caused a grievance.