Register
In Drewland, the money supply equals $1,000 and nominal GDP equals $5,000, then velocity of money equals A, 0.2. B. 2. C. 5. D. 50. E. cannot be determined with the information provided.
174k views
2 votes
In Drewland, the money supply equals $1,000 and nominal GDP equals $5,000, then velocity of money equals

A, 0.2.
B. 2.
C. 5.
D. 50.
E. cannot be determined with the information provided.

User Ring Bearer
by
5.2k points

1 Answer

3 votes
Answer: C. 5. GDP (gross domestic product) is the amount measuring the total economic output of the goods and services of one country. GDP is nominal if there is no inflation adjustment. Assuming that our GDP is nominal: The formula for GDP is: GDP = Money Supply x Velocity of Money In our example, GDP=5,000 Money Supply= 1000 We rearrange the formula to get velocity of money (V) V=GDP/Money Supply V=5,000/1000 V=5
User Nayiaw
by
5.4k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

5.7m questions

7.4m answers

Other Questions

Paine is echoing frin locke the trying of which principle to the foundation for government that would most support revolt from great britian?
What considerations should you make when choosing a place to live & why?
Culture will impact your observations and assessments because it influences A. a child's ability to meet developmental milestones. B. the way you connect with the family. C. the likelihood a child will
Patients often prefer privacy when it comes to being weighed. They may be embarrassed, in denial, or angry about their weight. How can you communicate, provide privacy, and demonstrate sensitivity to a
How did east european ethnic and religious groups contribute to american culture in the 1800s
Link Copied!