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:

Defamation

A false statement made about someone, typically written (libel) or spoken (slander), that injures that person's reputation.

First Amendment

An amendment to the United States Constitution that guarantees freedoms concerning religion, expression, assembly, and the right to petition.

Communication

The process of transmitting information, ideas, thoughts, or feelings between individuals or groups.

Intermediate Test

A standard used in legal and regulatory contexts to evaluate the constitutionality or appropriateness of a policy or action, requiring it to further an important government interest in a way that is substantially related to that interest.