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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