Two Countries, Alpha and Beta, Have the Same Levels of Nominal

question 7

Multiple Choice

Two countries, Alpha and Beta, have the same levels of nominal and real GDP. Each dollar in Alpha is used more frequently than each dollar in Beta. Therefore, it must be the case that ________ in Alpha than in Beta.

• A)the rate of inflation is greater
• B)the money stock is smaller
• C)the price level is greater
• D)the velocity is lower

---

Definitions:

Direct Expenses

Costs directly attributable to the production of a specific product or service, such as materials and labor.

Rights Offering

A rights offering is a method by which a company raises capital by offering existing shareholders the right to buy additional shares directly, usually at a discount to the current market price.

Existing Stock

Securities or inventory that are currently held or available for sale in the market.