If Nominal GDP Equals $10 Trillion and the Velocity of Circulation

question 281

Multiple Choice

If nominal GDP equals $10 trillion and the velocity of circulation is 5, then

• A) real GDP is $2 trillion.
• B) the quantity of money is $50 trillion.
• C) the quantity of money is $2 trillion.
• D) the real value of the quantity of money is $10 trillion.

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Definitions:

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A stomach distress with distaste for food and an urge to vomit, often a symptom of a variety of conditions.

Edema

Swelling caused by excess fluid trapped in the body's tissues.

Trimester

One of the three approximately three-month periods into which pregnancy is divided.

Salt

A mineral composed primarily of sodium chloride (NaCl), used as a seasoning and preservative in foods.