Which of the Following Statements Is True

question 82

Multiple Choice

Which of the following statements is true?

• A) Velocity equals the money supply.
• B) GDP is larger than the money supply if velocity is greater than 1.
• C) The money supply must be equal to GDP.
• D) GDP is always twice the money supply.

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Definitions:

Weighted Average Method

An inventory costing method that assigns an average cost to each unit of inventory, considering the units' weights in the calculation.

Finished Goods

Products that have completed the manufacturing process but have not yet been sold to customers.

Process Costing System

A method of assigning production costs to units of output by averaging the total costs over all units produced, suitable for manufacturing processes producing homogeneous products.

Weighted Average Method

An inventory costing method that calculates the cost of goods sold based on the average cost of all items, weighted by the quantity.