If the Stock of Money Is $200 Billion, Velocity Is

question 13

Multiple Choice

If the stock of money is $200 billion, velocity is 5, and the price level is 5, what is income?

• A) $8 billion
• B) $40 billion
• C) $200 billion
• D) $5,000 billion

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Definitions:

Minimum

The lowest allowable or possible amount, level, or point.

Marginal Cost

The amount needed to generate one more unit of a good or service.

Average Total Cost

The overall expense of manufacturing, when dispersed across the number of products made, encompassing both constant and fluctuating expenses.

Average Variable Cost

The sum of all costs that fluctuate with production volume, divided by the total amount of goods produced.