If the Stock of Money Is $20 Billion, Velocity Is

question 151

Multiple Choice

If the stock of money is $20 billion, velocity is 4, and real output is $40 billion, what is the price level?

• A) 0.5
• B) 2
• C) 8
• D) 320

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Definitions:

Sensorimotor Stage

A Piagetian stage of infancy marked by the absence of the capacity for mental representation.

Mental Representation

An internal depiction of information.

Object Concept

The mental representation and understanding of objects, including their properties and how they relate to other objects.

Circular Reactions

Behaviors repeated over and over again, often observed in infant development, which serve to consolidate learning and motor skills.