If Nominal GDP Is $600 Billion And, on the Average

question 95

Multiple Choice

If nominal GDP is $600 billion and, on the average, each dollar is spent three times per year, then the amount of money demanded for transactions purposes will be

• A) $1,800 billion.
• B) $600 billion.
• C) $200 billion.
• D) $1,200 billion.

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Definitions:

Stock Price

The cost of purchasing a share of a company in the stock market; it fluctuates based on supply and demand.

Dividend Income

Earnings distributed to shareholders, usually derived from the company's profits, for holding the company's stock.

Stock Split

A corporate action to increase the number of outstanding shares through a proportional division, reducing the stock price accordingly.