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:

Maximum Profit

The highest possible financial gain achievable by a business or investment, often the primary goal of economic activities and operations.

Corners

Points at which two or more lines or edges meet, often used in the context of geometry or spatial planning.

Profit

The financial benefit gained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Restriction

A rule or condition that limits or controls what can be done.