If on Average, a Dollar Is Spent 4 Times Each

question 7

Multiple Choice

If on average, a dollar is spent 4 times each year to purchase real output, the velocity of money is:

• A) one-fourth.
• B) four.
• C) the money supply divided by 4.
• D) nominal GDP divided by four.

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Definitions:

Actual Fraud

Refers to intentional deception made for personal gain or to damage another individual.

Material Fact

An important fact that if known might influence a decision maker’s decision, such as in a contract negotiation or in the dissemination of information to investors.

Mislead

To cause someone to have a wrong idea or impression about someone or something.

Ultramares Rule

A doctrine limiting the liability of auditors to third parties for negligence, except in cases of fraud or misrepresentation.