If a Nation's Nominal GDP Is $40 Billion, Its Money

question 237

Multiple Choice

If a nation's nominal GDP is $40 billion, its money supply is $8 billion, and its price level is 2, then the velocity of money is

• A) 16.
• B) 2.
• C) 5.
• D) 10.

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Definitions:

Richard Lazarus

A psychologist known for his work on stress and coping, emphasizing the role of cognitive processes in response to external stressors.

Sympathetic Nervous System

The part of the autonomic nervous system that prepares the body for action by accelerating heartbeat and increasing blood pressure.

Physiological Reactions

Involuntary bodily responses to stimuli, including changes in heart rate, breathing, perspiration, etc., often driven by the autonomic nervous system.

Palms Sweat

The phenomenon of increased perspiration on the palms typically triggered by anxiety, nervousness, or high temperatures.