Assume That M Is $200 Billion and V Is 6

question 212

Multiple Choice

Assume that M is $200 billion and V is 6. If V increases by 15 percent, then, according to the monetarist equation, nominal GDP will have increased by

• A) $140 billion.
• B) $180 billion.
• C) $220 billion.
• D) $260 billion.

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Definitions:

Football Tickets

Passes that allow entry to football (soccer or American football) games, often purchased by fans to watch their favorite teams play.

Demand

Refers to the quantity of a particular good or service that consumers are willing and able to purchase at various prices during a given period of time.

Price-Elastic

Describing a situation where the demand for a product significantly changes in response to changes in its price.

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded by consumers, normally downward sloping.