Author Question: If a nation's nominal GDP is 40 billion, its money supply is 8 billion, and its price level is 1.25, ... (Read 83 times)

Tazate · **on:** Jun 30, 2018

If a nation's nominal GDP is 40 billion, its money supply is 8 billion, and its price level is 1.25, then the velocity of money is

A) 2.0. B) 0.2. C) 6.25. D) 5.0.

Question 2

The fraction of deposits that banks are required by law to hold and not lend out are called its

A) required reserves. B) net worth. C) excess reserves. D) reserves.