If an Economy Produces 5,000 Units of Output with a Price

question 119

Multiple Choice

If an economy produces 5,000 units of output with a price level of $1 and with a velocity of money of 4, we know that the money supply must be:

• A) $4,000.
• B) $1,250.
• C) $2,500.
• D) $5,000.