If the Stock of Money Is $60 Billion, Velocity Is

question 282

Multiple Choice

If the stock of money is $60 billion, velocity is 5, and real output is $100 billion, what is the price level?

• A) 0.12
• B) 1.4
• C) 3
• D) 6

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Definitions:

Day-To-Day Basis

Refers to activities or operations that are performed on a daily basis, signifying regular, everyday tasks or duties.

EOQ

Economic Order Quantity, a formula used by businesses to determine the optimum order quantity that minimizes both ordering and holding costs.

Microchips

Small semiconductor devices that contain integrated circuits used to perform computing tasks or store data, fundamental components of modern electronics.

Carrying Cost

The total expense associated with holding inventory, including storage costs, insurance, and opportunity costs, among others.