If Nominal GDP Is $4,000 Billion and the Amount of Money

question 162

Multiple Choice

If nominal GDP is $4,000 billion and the amount of money demanded for transactions purposes is $800 billion, it can generally be concluded that:

• A) The asset demand for money is $3,200 billion
• B) The total demand for money is $4,800 billion
• C) On average, each dollar will be spent five times a year
• D) The supply of money needs to be increased to meet the demand

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