According to the Equation of Exchange,if Nominal GDP Equals $6

question 90

Multiple Choice

According to the equation of exchange,if nominal GDP equals $6 trillion and the money supply equals $1 trillion,the velocity of money:

• A)must be 6.
• B)must be 1/6.
• C)must be 6 trillion.
• D)must be 1/6 trillion.
• E)cannot be determined unless we know the price level.

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Definitions:

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue owed by its customers over a period.

Management Assessment

An evaluation process where management reviews financial and operational performance, often for strategic decision-making.

Interest

The cost of borrowing money, expressed as a percentage of the amount borrowed, paid by the borrower to the lender.

Note Receivable

A financial asset representing a written promise for a debtor to pay a certain amount of money to the holder of the note on a specific date or on demand.