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.

---

Definitions:

Junk Bonds

High-yield, high-risk securities issued by corporations or municipalities considered to be at greater risk of default.