If Nominal GDP Is $800 Billion And, on Average, Each

question 377

Multiple Choice

If nominal GDP is $800 billion and, on average, each dollar is spent four times in the economy over a year, then the quantity of money demanded for transactions purposes will be

• A) $200 billion.
• B) $400 billion.
• C) $800 billion.
• D) $3,200 billion.

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Definitions:

Massachusetts Bay

A region in the northeastern United States, known for the establishment of one of the earliest and most significant English colonies in the 17th century.

Indentured Servants

Individuals who agreed to work for a set period of time, without pay, in exchange for transportation to a new country, lodging, and food.

Puritans

A collective of English Protestants during the 16th and 17th centuries aiming to cleanse the Church of England from Roman Catholic rituals.