A Drop in Velocity Means That at Any Nominal GDP

question 107

Multiple Choice

A drop in velocity means that at any nominal GDP there is a desire to hold a ________ proportion of assets in money form,thus ________ shift in the LM curve.

• A)larger,a downward
• B)larger,an upward
• C)smaller,a downward
• D)smaller,an upward

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Definitions:

Work in Process

Items that are in the production phase but not yet completed; part of inventory accounting in manufacturing.

Period Costs

Expenses that are not directly tied to the production of goods and services and are instead related to the time period in which they are incurred.

CEO Salary Expense

The cost incurred by a company for the compensation of its Chief Executive Officer, considered part of operating expenses.

Factory Insurance Costs

Premiums paid for insurance policies that protect manufacturing facilities and equipment against losses or damages.