If the Velocity of the M1 Money Supply Is 4

question 204

Multiple Choice

If the velocity of the M1 money supply is 4 and nominal GDP is $200 billion,the stock of money in circulation must be

• A)$25 billion.
• B)$50 billion.
• C)$100 billion.
• D)$800 billion.

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Definitions:

Hyperpolarization

An increase in a cell's membrane potential, making it more negative and less likely to fire an action potential.

Voltage-Gated

Pertaining to ion channels that open or close in response to changes in membrane potential, crucial for nerve impulse conduction.

Na+

Na+ represents Sodium ions, which are essential electrolytes in the body that help maintain blood pressure, fluid balance, and are critical for the functioning of muscles and nerves.

Extracellular

Pertaining to being outside the cell membrane.