If Nominal GDP = $15 Trillion and the Quantity of Money

question 181

Multiple Choice

If nominal GDP = $15 trillion and the quantity of money is $3 trillion, what is the velocity of circulation?

• A) 45
• B) 18
• C) 5
• D) 12

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Definitions:

Investment

The allocation of resources with the expectation of generating an income or profit.

Present Value

The value today of a sum of money or sequence of cash flows expected in the future, calculated using a designated interest rate.

Contingent Liabilities

Possible obligations that might arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more future events.

U.S. GAAP

Generally Accepted Accounting Principles in the United States, a framework of accounting standards, principles, and procedures.