If the Amount of Money in Circulation Is $400 Billion

question 135

Multiple Choice

If the amount of money in circulation is $400 billion and the nominal GDP is $800 billion, the velocity of money is

• A) 0.5.
• B) 2.
• C) 4.
• D) 8.

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Definitions:

Mailbox Rule

A legal principle stating that an offer is considered accepted once the acceptance is dispatched, not when it is received by the offeror.

Acceptance

In contract law, it refers to the act of agreeing to the terms of an offer, thereby creating a binding contract.

Valid Acceptance

An agreement to the terms of an offer in contract law, which results in a binding contract between the parties.

Valid Offer

A proposal made by one party to another intending to create a legally binding agreement that is specific, definitive, and capable of acceptance.