If Velocity of Money Is 6, the Price Level Is

question 34

Multiple Choice

If velocity of money is 6, the price level is 1.2, and real output is worth $1,100 billion, what is the money supply?

• A)$65 billion
• B)$153 billion
• C)$220 billion
• D)$5,500 billion

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Definitions:

Stability

The condition of being resistant to change and capable of maintaining a balanced or constant state despite external pressures.

Equilibrium

A state of balance or stability within a system, where competing forces or influences are equal.

Manifest Functions

The recognized and intended consequences of any social pattern, which are explicitly stated and understood by the participants in a social system.

Latent Functions

The unrecognized or unintended consequences of any social pattern, which may contribute to the functioning of a social system.