According to the Equation of Exchange,if Real GDP Is $3

question 120

Multiple Choice

According to the equation of exchange,if Real GDP is $3 trillion and the money supply is $0.5 trillion,then velocity

• A) must be 6.
• B) must be 1/6.
• C) must be 4 trillion.
• D) must be 1/4 trillion.
• E) cannot be determined without knowing what the price level is.

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Definitions:

Glycogen

The principal storage polysaccharide in animal cells; formed from glucose and stored primarily in the liver and, to a lesser extent, in muscle cells

Cellulose

A structural polysaccharide consisting of beta glucose subunits; the main constituent of plant primary cell walls.

Starch

A polysaccharide composed of alpha glucose subunits; made by plants for energy storage.

Glycogen

A multi-branched polysaccharide of glucose that serves as a form of energy storage in humans, animals, fungi, and bacteria.