If a Dollar of Money Is Used 5 Times in Transactions

question 46

Multiple Choice

If a dollar of money is used 5 times in transactions in an economy over the course of a year and the supply of money is $120 billion, what is the volume of total spending in the economy?

• A)$5 billion
• B)$600 billion
• C)$240 billion
• D)$20 billion

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Definitions:

Celebrating Success

The act of acknowledging and rejoicing over accomplishments or milestones, which can boost morale and foster unity within a team or organization.

Hawthorne Studies

A series of experiments conducted in the 1920s and 1930s that studied the effects of changes in the work environment on employee productivity, laying the groundwork for modern human resources management.

Massive Industrialization

The rapid and extensive growth and development of industry and manufacturing capabilities within a region or country.

Worker's Productivity

A measure of the efficiency of a worker, calculated by the output produced over a defined period of time relative to the input used.