If Something Causes the Velocity of Money to Increase,the Same

question 126

Multiple Choice

If something causes the velocity of money to increase,the same amount of money will

• A)be able to support more transactions,so nominal GDP can increase
• B)be forced to support more transactions,so nominal GDP will decrease
• C)be able to support fewer transactions,so nominal GDP will decrease
• D)no longer have to support so many transactions,so nominal GDP can increase
• E)mean nothing can happen to nominal GDP

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Definitions:

Multiplicative Rule

In probability, a rule that calculates the probability of two independent events occurring together by multiplying the probability of each event.

Probability

A gauge of an event's occurrence likelihood, numerically between 0 and 1.

City Council

An elected or appointed body that governs a city, town, municipality, or local government area, making decisions on local laws, policies, and budgets.

Republicans

A member or supporter of the Republican Party, one of the two major political parties in the United States.