If Real Output Is $20 Billion, the Price Level Is

question 105

Multiple Choice

If real output is $20 billion, the price level is 4, and velocity is 2, what is the stock of money?

• A) $2.5 billion
• B) $10 billion
• C) $40 billion
• D) $160 billion

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Definitions:

Annual Dividend

The annual sum of dividends received by a shareholder for each share of stock owned.

Required Return

The minimum profit or yield that investors expect to receive on an investment, factoring in its risk.

Constant

A fixed value that does not change.

EPS Growth Rate

A measure of how the company's earnings per share (EPS) has grown over a specific period, indicating its profitability trends.