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:

Collection Time

The average period it takes for a business to receive payments owed by its customers for goods or services.

Cheques

Physical, written instruments instructing a bank to pay a specific amount of money from the writer's account to the person or entity named on the cheque.