Which of the Following Is the Definition for the Real

question 52

Multiple Choice

Which of the following is the definition for the real supply of money?

• A)the stock of money measured in terms of goods,not dollars.
• B)the stock of high powered money only.
• C)the real value of currency in circulation only.
• D)the actual quantity of money,rather than the officially reported quantity.
• E)the ratio of the real GDP to the nominal money supply.

---

Definitions:

Interest Rate

The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal.

Productive Economic Resource

Assets or inputs used in the production of goods and services, including land, labor, capital, and entrepreneurship.

Entrepreneurship

The activity of setting up a business or businesses, taking on financial risks in the hope of profit.

Use Of Money

The various purposes for which money is used in an economy, including spending, saving, and investing.