If Real Output Is $10 Billion, the Price Level Is

question 114

Multiple Choice

If real output is $10 billion, the price level is 3, and velocity is 6, what is the stock of money?

• A) $1.8 billion
• B) $5 billion
• C) $19 billion
• D) $180 billion

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Definitions:

Indifference Curve

Represents a graph that shows a combination of two goods that give the consumer equal satisfaction and utility, thereby making the consumer indifferent.

Absolute Value

A mathematical function that describes the distance of a number on the real number line from zero, without considering direction.

Slope

The rate at which one variable changes in relation to another variable, often used in the context of a graph.

Indeterminate

A condition or situation that lacks a clear or definite resolution or outcome.