Final answer:
The velocity of money is the ratio of nominal GDP to the money supply. For a nominal GDP of 1800 and a money supply of 450, the velocity is 4. The correct option is C.
Step-by-step explanation:
The concept of velocity of money refers to how fast money moves through an economy within a certain period. It is calculated as the ratio of nominal GDP to the money supply. To find the velocity, you divide the nominal GDP by the money supply. For the question which asks, "If nominal GDP is 1800, and the money supply is 450, then what is velocity?", the answer is calculated as follows:
- Velocity = Nominal GDP / Money Supply
- Velocity = 1800 / 450
- Velocity = 4
Therefore, the correct answer is C. 4.