If the Amount of Money in Circulation Is $8 Billion

question 174

Multiple Choice

If the amount of money in circulation is $8 billion and the value of total output is $40 billion in an economy, then the

• A) velocity of money is 5.
• B) money supply is $40 billion.
• C) level of the price index is 320.
• D) equilibrium level of GDP is $320 billion.

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Definitions:

Smartphone Markets

A sector of the technology industry focused on the production, distribution, and sale of smartphones, characterized by rapid innovation and competition.

Tablet Markets

The sector or industry dedicated to the manufacturing, distribution, and sale of tablet computers.

Homogeneous Oligopolists

Firms within an oligopoly market structure that offer products or services that are very similar, making them close substitutes for each other.

Pure Monopoly

A market structure where a single firm controls the entire market for a product or service, with no close substitutes.