Suppose That the Nominal Money Supply Equals $2 Billion and Nominal

question 21

True/False

Suppose that the nominal money supply equals $2 billion and nominal GDP is $16 billion.Then, according to the equation of exchange, the velocity of money equals 8.

---

Definitions:

Merchandise Sold

This represents the goods that have been sold and delivered to customers.

Defective Merchandise

Goods that fail to meet quality standards and are therefore returned, repaired, or sold at a discounted price.

Selling Price

Selling price is the amount of money for which a seller is willing to sell his or her product or service.

Sales Allowance

A reduction in the sale price granted by the seller to the buyer, often due to minor defects or because the buyer has returned part of the order.