WebAttempts Score / 4 4. Problems and Applications Q1 Suppose that this year's money supply is $600 billion, nominal GDP is $15 trillion, and real GDP is $3 trillion. The price level is 5, and the velocity of money is 40 Suppose that velocity is constant and the economy's output of goods and services rises by 3 percent each year. WebIf GDP is 2400 and the money supply is 600, then what is the velocity? A. 18.3 B. 4 C. 4.57 D. 12 Answer: B Reference: Explanation: Type: Multiple Choice 42. If GDP is 1800 and …
What Is the Relationship Between Money Supply and GDP?
Web7 jul. 2024 · The money supply in the U.S. has spiked at an unprecedented rate. M2 rose 3.8 percent in March, 6.7 percent in April, and 5.0 percent in May, a stunning 83 percent annualized growth rate for three months. This lifted the year-over-year growth rate of M2 to 23 percent, almost double its prior fastest rate in the modern era. WebIf Southern Bank finds that it is not holding enough in reserves to meet the higher requirements, then it will likely: A. keep track of whether money is flowing in or out of the … state sporting infrastructure fund
Falling inventories typically indicate negative unplanned inventory ...
Web27 nov. 2024 · Velocity Of Money: The velocity of money is the rate at which money is exchanged from one transaction to another and how much a unit of currency is used in a given period of time. Velocity of ... Web8) If the money supply is 600 and nominal income is 3,600, the velocity of money is (a) 1/60. (b) 1/6. (c) 6. (d) 60. Answer: C Question Status: Previous Edition 9) If nominal GDP is $10 trillion, and the money supply is $2 trillion, velocity is (a) 20. (b) 10. (c) 5. (d) .2. (e) none of the above. Answer: C Question Status: New WebSpecific measurements of velocity depend on the definition of the money supply being used. Consider the velocity of M1, the total amount of currency in circulation and checking account balances.In 2009, for example, M1 was $1.7 trillion and nominal GDP was $14.3 trillion, so the velocity of M1 was 8.4 ($14.3 trillion/$1.7 trillion). state sports betting laws