If Something Causes the Velocity of Money to Increase,the Same

question 126

Multiple Choice

If something causes the velocity of money to increase,the same amount of money will

• A)be able to support more transactions,so nominal GDP can increase
• B)be forced to support more transactions,so nominal GDP will decrease
• C)be able to support fewer transactions,so nominal GDP will decrease
• D)no longer have to support so many transactions,so nominal GDP can increase
• E)mean nothing can happen to nominal GDP

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Definitions:

Credit Entries

Bookkeeping records that increase liabilities or equity or decrease assets on a company's balance sheet.

Liability Account

A financial accounting account that represents obligations to pay debts or amounts owed to others.

Capital Account

An account showing the net worth of a business entity, including its equity and investments.

Asset Account

An account that records the assets owned by a company, showing their value on the balance sheet.