Suppose the Money Supply Equals $1,000 and Nominal GDP Equals

question 41

Multiple Choice

Suppose the money supply equals $1,000 and nominal GDP equals $3,000.What does V equal?  

• A) 1/3 
• B) 3 
• C) 300 
• D) 3,000

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Definitions:

How Much Decision

A consumer's determination of the quantity of a good or service to purchase, balancing the marginal utility and the price.

Total Revenues

The total amount of money generated by a firm from its sales activities before any costs or expenses are subtracted.

Total Costs

An alternate formulation for the sum of all expenses incurred in the production of goods or services, reflecting both fixed and variable components.

Profit

The financial gain obtained when the revenue from business activities exceeds the costs and expenses associated with operating the business.