If Velocity Is Equal to 4, This Means That

question 232

Multiple Choice

If velocity is equal to 4, this means that

• A)the rate of growth of the money supply is 4.
• B)each dollar of the money supply is spent on the average 4 times per year.
• C)for every 4 dollars of the money supply, nominal GDP will increase by 4.
• D)an increase in the money supply will lead to an increase in aggregate supply of 4.

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Definitions:

Economic Pressure

The coercive use of financial resources to influence or compel behavior, often in the context of negotiation or conflict.

Union Shop Contract

An employment agreement requiring non-union workers to join the union within a certain period of hiring, to remain employed.

Union Members

Individuals who are part of a labor union, an organization that represents workers in negotiations with employers over wages, benefits, and working conditions.

Employer

An individual or organization that hires and pays for the services of workers or employees.