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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