Suppose the Amount of Money in the Economy Times the Velocity

question 67

Multiple Choice

Suppose the amount of money in the economy times the velocity of money equals $800 million.According to the equation of exchange, what does the $800 million represent?  

• A) real GDP 
• B) nominal GDP 
• C) velocity 
• D) quantity of money

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Definitions:

Beaker

A beaker is a simple container used in laboratories for stirring, mixing, and heating liquids, typically cylindrical in shape with a flat bottom and a lip for pouring.

Animate

To bring to life or to give motion to something, often referring to the process of making inanimate objects or characters appear alive, as in animation.

Operational

Pertaining to or involving the practical application of ideas, procedures, and processes rather than theoretical aspects.

Centered

Focuses on placing importance or emphasis on a particular element or aspect in a context or situation.