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.

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Definitions:

John B. Watson

An American psychologist and one of the founders of behaviorism, emphasizing the importance of observable behavior over internal mental processes.

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A theory of learning which states that all behaviors are acquired through conditioning, emphasizing the role of environmental factors in shaping behavior.

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A global conflict that occurred from 1939 to 1945, involving most of the world's nations and marked by significant events and atrocities, including the Holocaust.

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