If the Amount of Money in Circulation Is $8 Billion

question 123

Multiple Choice

If the amount of money in circulation is $8 billion and the value of total output is $40 billion in an economy, then the:

• A) Velocity of money is 5
• B) Money supply is $40 billion
• C) Level of the price index is 320
• D) Equilibrium level of GDP is $320 billion

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Definitions:

Subduction Zone

A region of the Earth's crust where one tectonic plate is being forced under another, often resulting in volcanic activity and earthquakes.

Tectonic Setting

The geological and geographic location in relation to the movements and boundaries of Earth's tectonic plates.

Transform Fault

A type of strike-slip fault where two tectonic plates slide past each other horizontally, commonly found at the boundary between oceanic plates.

Tohuku Earthquake

A devastating magnitude 9.0 earthquake that struck off the coast of Japan in 2011, causing a massive tsunami and nuclear disaster.