If Nominal GDP Is $4,000 Billion and the Amount of Money

question 99

Multiple Choice

If nominal GDP is $4,000 billion and the amount of money demanded for transactions purposes is $800 billion, it can generally be concluded that

• A) the asset demand for money is $3,200 billion.
• B) the total demand for money is $4,800 billion.
• C) on average, each dollar will be spent five times a year.
• D) the supply of money needs to be increased to meet the demand.

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Definitions:

Rods

Photoreceptor cells in the retina of the eye that are sensitive to low light levels, contributing to night vision.

Iris

The colored part of the eye that controls the size of the pupil and the amount of light that enters the eye.

Pupil

The black circular opening in the center of the iris of the eye, which changes size to regulate the amount of light reaching the retina.

Lens

A piece of transparent material, such as glass or plastic, that bends light rays to form an image on a camera sensor or the retina of the eye.