If on Average, a Dollar Is Spent 4 Times Each

question 107

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:

Judgment Debts

Money that a court has ordered one party to pay another party.

Transportation

The process or means by which passengers or goods are moved from one location to another.

Lien

A legal right or claim against a property by a creditor to secure the payment of a debt.

Real Property

Refers to land and any permanent structures or improvements attached to the land, such as buildings or houses.