According to the Equation of Exchange,if Real GDP Is $2

question 6

Multiple Choice

According to the equation of exchange,if real GDP is $2 trillion and the money supply is $0.5 trillion,the velocity of money:

• A)must be 4.
• B)must be 1/4.
• C)must be 4 trillion.
• D)must be 1/4 trillion.
• E)cannot be determined unless we know the price level.