If the Amount of Money in Circulation Is $50 Billion

question 133

Multiple Choice

If the amount of money in circulation is $50 billion and the nominal GDP is $200 billion, the velocity of money is

• A) 0.25
• B) 0.75.
• C) 2.
• D) 4.

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Definitions:

Shallow Processing

Encoding on a basic level, based on the structure or appearance of words.

Encoding Failure

a situation in which information does not enter the long-term memory due to inadequate attention to or processing of the information.

Rehearsal

The act of practicing or repeating information or actions to enhance memory or performance.

Short-Term Memories

Memory storage that holds small amounts of information for short periods of time, typically seconds to minutes.