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.

---

Definitions:

Rational Thoughts

The process of thinking clearly, logically, and without emotional bias.

Traditional Authority

A type of leadership in which the authority of an organization or a ruling regime is largely tied to tradition or custom.

Legal

Pertaining to the system of rules that a particular country or community recognizes as regulating the actions of its members and may enforce by the imposition of penalties.

Charismatic

Relating to or characteristic of charisma, involving a compelling charm or presence that inspires devotion or admiration in others.