Suppose Nominal GDP Equaled $10,988 Billion While the M2 Money

question 83

Multiple Choice

Suppose nominal GDP equaled $10,988 billion while the M2 money supply was $6,063 billion. What was the velocity of the M2 money stock?

• A) 0.45
• B) 0.55
• C) 1.81
• D) 2.36

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Definitions:

Emancipation Proclamation

An executive order issued by President Abraham Lincoln in 1863, declaring the freedom of all slaves in Confederate-held territory.

Border States

During the American Civil War, the slave states that did not secede from the Union, including Delaware, Maryland, Kentucky, and Missouri.

Military Necessity

A legal principle in international law that justifies the use of force in armed conflict, permitting measures not forbidden by international law to secure the ends of war.

Education

The process of receiving or giving systematic instruction, especially at a school or university, fostering knowledge, skill development, and critical thinking.